The C-operative Bank has insisted it does not need a taxpayer bailout after ratings agency Moody's downgraded it to 'junk' status.
The Co-Operative Bank's chief executive has resigned after Moody's downgraded its debt to junk status.
The Business Secretary told us that we have reached the stage where the banks were just like "pawnbrokers".
Bank reforms and tax evasion will lead the agenda at a meeting of G7 finance ministers, which is being chaired by George Osborne at a country house in Buckinghamshire.
Future Governor of the Bank of England Mark Carney and IMF managing director Christine Lagarde are among those attending the two-day talks.
The IMF, which will soon issue its annual health check of the UK, has already suggested the Chancellor must be more flexible with his deficit-reduction plans.
Mr Osborne conceded prior to this weekend's talks that meetings between the larger G20 group - which includes emerging economic forces like China, India and Brazil - play a greater role in "setting the global rules of the game".
But he insisted the G7 nations - the United States, Germany, Japan, the UK, Italy, France and Canada - still wield "major economic firepower".
- The Bank is part of The Co-operative Group, the UK's largest consumer co-operative and includes Smile internet bank and Britannia.
- The Bank has around 5.5 million customers.
- It offers a range of financial products, including current accounts, savings accounts, credit cards and loans.
- There are over 300 branches across England, Scotland and Wales.
In light of today's news, we would like to reassure customers and members that we haven’t sought nor do we need government supportFrom @CoopBankPR on Twitter:
The Co-operative bank has issued the following statement after its recent Moody's rating agency downgrade.
We are disappointed by the ratings downgrade announced by Moody’s. We have a strong funding profile and high levels of liquidity, which are significantly above the regulatory requirements.
We do acknowledge, like the rest of our banking sector peers, the need to strengthen our capital position in light of the broader economic downturn and the pending introduction of enhanced regulatory requirements, and we have a clear plan to drive this forward throughout the coming months.
Our banking business is already characterised by excellent levels of customer service and advocacy, as recently highlighted in reports by YouGov and uSwitch.
Our primary current account base in recent years has enjoyed significant growth. The actions we will now take to strengthen our balance sheet and simplify our business model around a core relationship banking offer, will create a compelling co-operative banking business which is truly distinctive within the banking sector.
Moody's has downgraded the Co-op Bank's bonds to junk after losses in its real estate business and weakness inthe rest of the bank to survive such shocks. The head of the bank has "stood down".
Co-op pulled out of the deal to buy Lloyds branches last month.
The head of the Co-operative Group Peter Marks has said that "banking has become very difficult" in the UK and that economic growth is too poor to expect a profit.
He told ITV News' Economics Editor Richard Edgar that the Co-op remains committed to its banking operation but that he sees no point in expanding with interest rates likely to stay so low.
The Prime Minister's spokesman has said that Co-operative Group's decision not to buy more than 600 branches from Lloyds was a matter for the two companies.
But on the wider point of banking reform, he told me:
– prime minister's spokesman
I think that there are reforms in thefinancial arena that have made the UK financial sector safer and stronger and anumber of measures are benefitting consumers including through choice.
The Co-op reportedly cited regulatory requirements as one of the reasons for the collapse of the deal.