12 December 13

This week the Save Our Bank campaign put our supporters' demands to the Co-op Group Chief Executive. We're keeping the pressure on to ensure the Bank's ethics stay strong, and are shown to stay strong. Here's our latest update on where we stand.

06 December 13 from saveourbank.coop

This latest newsletter includes results from the survey asking what Save Our Bank supporters think about the campaign priorities.

30 November 13 from www.co-operative.coop

Late Friday 29th the Co-operative Group announced that a large majority of retail bondholders had voted to accept the recapitalisation deal struck between the Co-op Group and private investors including the hedge funds.

28 November 13

The Guardian reports this morning (28 November) that the Nationwide £500m share issue has been oversubscribed - raising the full £500m in just four days. This raises hopes that a mutual buy-back of Co-op Bank is feasible. The issue "enables the lender to raise money from external investors without compromising its mutual status". The issue was for "core capital deferred shares" (CCDS).

 

 

 

28 November 13 from www.theguardian.com

Andrew Bibby writes in Guardian Social Enterprise section.

 

26 November 13

Crunch time at the bank - help spread the word

While the media has been focused on the revelations about former Co-op Bank chair Paul Flowers, the Co-op Bank itself has been worrying about how to ensure that investors accept the proposed rescue plan. The first deadline is at the end of this week, and all votes must be in by the following week. No one really knows what will happen if the investors don’t vote for the plan. If they accept then there will be rapid movement to seal the deal with the hedge funds. Save Our Bank could have an important influence on how that works.

24 November 13 from www.iansnaith.com

A useful overview of new investigations and inquiries into The Co-operative Bank and their legal framework.

23 November 13 from www.bbc.co.uk

Robert Peston reveals that the Financial Services Authority told The Co-operative Group as early as April 2012 that the bank had too little capital to be allowed to go through with the purchase of over 600 branches from Lloyds. 

"So why did the FSA allow the Co-op Bank continue to chunter down the track towards this proposed massive expansion?

"And perhaps more importantly, since the FSA had conspicuous doubts about the Co-op Group's competence in banking, why didn't it follow up those doubts - which would have uncovered how stretched bank management really was, how an expensive IT project was going seriously awry and how vast numbers of loans were going bad?

"[... ] Did the Chancellor or the Treasury tell the FSA to make the deal happen?"

22 November 13 from mobile.reuters.com

Vultures are circling around The Co-operative Group, looking for whatever they might be able to pick up for a bargain price. The Co-operative Funeralcare could be next, says this Reuters article. These funds are motivated purely by profit, but if we join together we can put pressure on them to keep the bank ethical, and eventually return it to ownership by its customers. 

21 November 13 from www.bbc.co.uk

According to Robert Peston at the BBC, the hedge funds acquiring a majority stake in The Co-operative Bank "can only refuse to put the additional £125m of cash into Co-op Bank if creditors fail to vote for conversion of Co-op Bank's £1.3bn of bonds and prefs into shares and new bonds.

"So they don't have a lot of leverage to improve the terms of the deal.

"As for scuppering the rescue altogether, that doesn't look altogether rational - because hedge funds' significant investment in Co-op Bank bonds might well be wiped out in those circumstances (though it would not necessarily be wiped out altogether; they might still be able to convert their bonds into shares, I am told)."

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