Co-Operative Bank

Co-Operative Bank Recapitalisation

The Co-Operative Bank has announced details of their revised plans for “recapitalisation” of the bank, which is a euphemism for rescuing it from potential bankruptcy. In effect the previous capital of the bank has been wiped out by dodgy lending, by inept acquisitions such as that of the Britannia B.S. and write-offs of IT expenditure. The existing institutional debt holders will have their debt converted to equity, plus will subscribe additional capital. The Co-Operative Group will put in an additional £462m of ...