The Co-op has released details of £1.5bn deal to plug hole over two years. Investors who lent them cash, not customers will take the hit.
The key thing about this first 'bail-in' for a high street bank, is the deal with the new regulator - PRA - doesn't affect the taxpayer or the customer.
If you hear 'subordinated junior bond holder' again and again today, that's the investors who lent to Co-op, whose cash will be swapped for shares.
But some of those Co-op investors may be very badly affected, could potentially be pensioners losing life savings.
The Co-operative Group has announced a plan to address the £1.5bn shortfall in capital at its bank. Group Chief Executive, Euan Sutherland, has outlined the plan on the group's YouTube channel:
The Co-operative Group has unveiled a deal with regulators that will see the co-operative plug a £1.5 billion shortfall in the balance sheet of its banking arm.