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Three months after the last £1.5bn rescue was signed, sealed and delivered the Co-op bank is back for more

"Good with money" is a slogan the Co-operative Bank dropped 18 months ago. It was probably a wise decision because three months after the last rescue deal (£1.5 billion) was signed, sealed and delivered the bank is back for more.

Breath-taking, really. But what is interesting is that the Co-op needs an extra £400m to protect it (and its savers) from potential losses going forward, in part because the bank is handing back such large sums of money to its customers for past sins.

The good with money slogan was dropped. Credit: PA

The Co-op Bank, which prides itself on being ethical, has discovered that the cost of compensating customers who were mis-sold Payment Protection Insurance and interest rate swaps will be higher than it previously thought.

There's nothing unusual in banks reassessing "provisions" such as these, the difference is that Co-op Bank simply isn't in a position to afford to pay out compensation without extra support from shareholders - so it's out with the begging bowl.

There's no reason to think that the Co-op won't raise the money. Credit: PA

£400m is a lot of money but there's no reason to think the Co-op won't get it. The question is will its biggest shareholder put its hand in its pocket?

The Co-operative Group owns 30% of the Co-op bank and the group's acting chief executive, Richard Pennycook, has a decision to make. Can he afford to stump up the £120m he is being asked for (on top of the £500m already pledged) or will he allow the group's shareholding to be further diluted?

This is another terrible day for the Co-op Bank but, perhaps remarkably, the litany of recent bad news does not seem to have cost it any customers. 4.7 million people bank with the Co-op, more or less the same number as a year ago.