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.
– Sir Christopher Kelly
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.