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Treasury to sell of remaining Lloyds Bank stake

The Treasury will begin to sell off part of its remaining stake in Lloyds Banking Group within days, according a plan launched by Chancellor George Osborne.

ITV News Business Editor Joel Hills reports:

'No surprise' Co-op Bank failed stress test, chief says

Co-operative Bank chief executive Niall Booker said it was "no surprise" that the bank failed the stress test as it is in the early stages of its turnaround plan.

The bank is much stronger than a year ago.

As the regulator notes today, we have achieved the target of building our capital base and the actions we have taken during the first year of our business plan have made the bank more secure for the benefit of all stakeholders.

– Co-operative Bank chief executive Niall Booker

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Lloyds and RBS narrowly pass bank stress test

Lloyds Banking Group and Royal Bank of Scotland have narrowly passed a Bank of England test to see how lenders would cope with severe economic stress.

Lloyds Banking Group and Royal Bank of Scotland have narrowly passed a Bank of England stress test . Credit: PA Wire composite

The test, using the position of banks and building societies at the end of 2013, found both RBS and Lloyds would be susceptible to such a crisis.

However, improvements and changes to their plans this year meant only the Co-op was required to submit a new plan.

Co-operative Bank fails Bank of England stress test

The Co-operative Bank has been ordered to shore up its balance sheet by axing £5.5 billion in loans after it failed a Bank of England stress test.

The Co-operative Bank has failed a Bank of England stress test. Credit: PA Wire

The Bank found that a severe downturn with house prices plunging 35% would wipe out the Co-op's capital because of the effect on its risky commercial property and sub-prime home loans.

Lord Myners: The Co-Op still has a future

Lord Myners makes a statement in the House of Lords. Credit: PA Archive

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 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.”

Ailing Co-Op 'committed to reform'

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.

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  1. Richard Edgar

'Enormous hostility' aimed at peer over Co-Op reforms

A general view of a Co-operative food store, in the Strand, central London.

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."

Lord Myners exits amid opposition to reformation plans

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 quits Co-Operative Group

File photo of Lord Myners Credit: Anthony Devlin/PA Wire

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-op boss hopes quitting will lead to reform

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.

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