Co-op Bank guilty of 'woefully inadequate' business practices

The Co-Op Bank was guilty of "woefully inadequate" business practices and appointing senior staff without any experience of the banking sector, a major new report has said.

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Co-op to 'take appropriate advice' on bonus clawback

ITV News Business Editor Joel Hills tweeted after speaking to Co-op Group chief executive Richard Pennycook:

Co-op Bank chief executive apologises for 'past failings'

In response to Sir Christopher Kelly's report, current Co-op Bank chief executive Niall Booker apologised for "past failings" and said it had been "working diligently" to address them.

The bank also revealed it was appointing new auditors, Ernst & Young, ending a 40-year relationship with KPMG amid a regulatory investigation into the Co-op's past accounts in the years leading up to the end of 2012.

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Report: Co-op Bank shortfall 'lies with Britannia merger'

Sir Christopher Kelly's review into the shortfall of the Co-operative Bank has concluded the roots of the bank's problems lies with the merger of the bank and the Britannia Building Society.

The roots of the shortfall lie in a merger between the Bank and the Britannia Building Society which should probably never have happened. Both organisations had problems. Bringing them together exacerbated those problems. It might have worked if the merged organisation had received first class leadership. Sadly it did not.

The Co-operative Bank executive management failed to exercise sufficiently prudent and effective management of capital and risk. The Banking Group Board failed in its oversight of the Executive. The Group Board failed in its duty as a shareholder to provide effective stewardship of an important member asset. Collectively they badly let down the Group’s members.

– Sir Christopher Kelly

Report attacks 'woeful' Co-Op Bank

The Co-Op Bank was guilty of "woefully inadequate" business practices and appointing senior staff without any experience of the banking sector, a major new report has said.

The bank was on the verge of possible collapse last year after a £1.5bn black hole was revealed in its balance sheet.

The report from Sir Christopher Kelly attacked 'woefully inadequate' practices at the Co-Op Bank. Credit: Rui Vieira/PA Wire/Press Association Images

The chair of the Committee on Standards in Public Life, Sir Christopher Kelly, pinpointed the decision to acquire the Britannia building society as the bank's single biggest mistake.

He also says the structure of the bank's senior leadership made some sort of failure "almost inevitable"

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