News has emerged that the Co-operative Bank has hired David Bagley, last seen when he resigned as HSBC's head of compliance after admitting that HSBC had allowed Mexican drug cartels to launder billions of dollars through its US operation for years. The website Complaince Matters reports:
The Save Our Bank campaign is calling on the Co-op Bank's Chief Executive not to accept the £1.7m bonus he has been promised if the bank's position improves. “The bank needs to take a lead and show that it is different from other banks,” said Shaun Fensom from the Save Our Bank campaign. “It can start by rejecting excessive pay deals.”
Reports in the media say that Lord Myners has resigned from the Co-operative Group board, apparently because of opposition to his proposed reforms of the governance of the Group.
The bank needs another £400m capital
Last week the Co-op Bank announced that unforeseen losses will mean it needs to raise another £400 million in capital on top of the £1.5 billion it raised in the recapitalisation last year.
In reaction to news that the Co-op Bank needs a further capital injection of £400m, The Save Our Bank campaign made the following statement:
Some people dismiss the Save Our Bank plan to raise money from ordinary members to buy back a co-operative majority stake in the bank. They say it's a nice idea but the sums of money involved are too high.
Euan Sutherland, the chief executive of The Co-operative Group - which owns 30% of the Co-operative Bank - resigned on 11 March. His resignation was accepted. This follows the row about pay which started following revelations on 9 March.
News of a proposal to pay big salary increases and bonuses for senior staff at The Co-operative Group has dismayed Save Our Bank supporters.
Customers of The Co-operative Bank will have recieved the following message by email or by post over the last week. We at Save Our Bank are pleased to see the bank finally communicating with its customers directly about the difficulties it has gone through, and pleased to see the organisation's values and ethics given some prominence.