Britain’s Co-operative Bank reveals new ca

Written by admin on 07/30/2019 Categories: 佛山桑拿网

Britain’s crisis-hit Co-operative Bank has revealed that it needed another STG400 million ($A728 million) of fresh capital to help to fill a hole in its finances.

南宁桑拿

Co-op said in a statement that it would seek the money via a sale of shares in the coming months.

The bank, which prides itself on ethical investments, said in a statement that it needed the cash for higher-than-expected compensation costs for the mis-selling of payment protection insurance on loans.

It also took a big hit from mis-selling interest rate hedging products, known as swaps, to small businesses.

In addition, the lender faced higher-than-expected restructuring costs.

“As a result of these additional costs and in order to restore the capital buffer… we intend to raise around STG400 million of additional capital,” the group said.

The troubled bank also warned that it expected to post a 2013 pre-tax loss of between STG1.2 billion and STG1.3 billion.

Monday’s news comes two weeks after Euan Sutherland resigned as Co-op Group chief executive, blaming the failure to reform the governance of the mostly mutual company that runs also supermarkets and funeral parlours.

The Co-op Bank meanwhile came close to collapse last year after it was ordered by regulators to increase its capital cushion by STG1.5 billion.

The bank was subsequently forced to hand control to US hedge funds in a restructuring aimed at plugging the vast black hole.

Co-op Bank slumped into fresh crisis last November after its former chairman Paul Flowers, a Methodist minister, was filmed allegedly planning to buy illegal drugs.

The bank now faces a series of investigations into what went wrong, and ongoing questions over the appointment and suitability of Flowers, who is said to have lacked knowledge of the financial sector.

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