The Co-operative Group was thrown back into crisis after its chief executive quit was he described as the "ungovernable" group.
Euan Sutherland thinks the Co-op group is "ungovernable" and I understand he offered his resignation last night at an emergency meeting.
As the Treasury announced an independent investigation into the Co-operative Bank its former chairman, Paul Flowers, was released on bail.
Lord Myners has said he was confident that The Co-Operative Group has a "good future" despite confirming he is standing down from its board of directors.
The Co-Op issued a statement earlier today saying the findings of Lord Myners' review would be revealed after a second report by Sir Christopher Kelly into the circumstances that led to the turmoil at the Group's banking arm was published.
The statement also said Lord Myners will remain a director of the Group until its AGM on May 17, at which Lord Myners' recommendations will be presented.
In a statement, Lord Myners said: "I am pleased that I am going to be able to complete my governance review and that the outcome of that work will be presented to members at the General Meeting.
"I am confident that there is a good future for The Co-operative Group if it commits to doing the right things on governance and leadership.”
The chair of the struggling Co-Operative Group insists that it is committed to reform despite the announcement that Lord Myners, the architect of a controversial shake-up plan, is to leave.
Ursula Lidbetter said the peer's forthcoming report would provide "invaluable stimulus" for the changes needed to help the embattled supermarkets-to-funerals group thrive, as the Co-op said it would be put to members next month.
"We are committed to reforming our governance and know that Lord Myners' report will provide invaluable stimulus for the changes we need to make." Ms Lidbetter said.
The way in which the news of Lord Myners' resignation has been released is "symptomatic of the tumoil at the Co-Op.
The former City minister tended his resignation earlier this evening and that there was an agreement to release this information in an 'orderly way' tomorrow but somebody left the meeting and immediately leaked it to the press.
A similar tactic forced chief executive Euan Sutherland to walk out after details of his salary were leaked to the press last month.
There is "enormous hostility" directed at Myners and Sutherland, who are outsiders brought into help modernise the Co-Op's "catastrophic governance structure."
Co-Operative Group independent director Lord Myners' sudden exit follows barrage of opposition to his proposals to reform troubled mutual.
Myners faced rising opposition for his plans to reform the group, which included replacing the existing boardroom structure and replacing it with a PLC-style model.
According to the Guardian newspaper, the former City minister is thought to be staying on to complete his controversial review which is unlikely to be accepted by the regional boards and independent societies which run the organisation.
Lord Myners has quit the board of The Co-Operative Group following days of criticism over his plan to reform the beleaguered group of supermarkets, funeral homes and pharmacies.
Former Co-operative Group boss Euan Sutherland has said he hopes his decision to quit will act as a catalyst for reform.
In an interview with the BBC, he said he hopes his departure would force through the changes needed among senior staff whom he called "ungovernable".
The senior democrats talk the talk of reform, but in practice they won't do it. My hope is that from the resignation will come healthy reform.
The Co-operative Group was thrown back into crisis today after its chief executive quit the "ungovernable" group in the wake of a meltdown in boardroom relations.
The mutual accepted Euan Sutherland's resignation after he blamed "an individual, or individuals" at the top of the group for deliberately seeking to undermine him by revealing details of his £3.66 million pay deal to a Sunday newspaper.
Chief financial officer Richard Pennycook has been appointed interim chief executive.
Mr Sutherland's departure after less than a year at the helm leaves the Co-op without a permanent boss and facing the biggest governance overhaul in its history.
Richard Pennycock has been appointed as the interim Co-op group chief executive after Euan Sutherland's resignation.
The chair of the Co-op group said: "We will start the process to appoint a permanent successor and urgently to reform our governance."
Mr Sutherland will not accept incentives agreed "for delivery and protection of value in group and the Bank, even though this was successfully delivered."
Euan Sutherland has released the following statement following his resignation from the Co-operative group:
– Euan Sutherland
It is with great sadness that I have resigned as Chief Executive. I have given my all to the business and had hoped to be able to lead its revival.