A report into the near collapse of the Co-operative Bank will blame poor governance at the organisation for its failings.
The report, commissioned by the Co-op Group and due to be published next week, will say the organisation was “culpable” and checks made before it bought the Britannia Building Society were “cursory”, reports the BBC.
The review is being chaired by Sir Christopher Kelly, chair of the King’s Fund charity, and was announced by the Co-op Group in July.
It looks at the decision to merge the Co-op Bank with the Britannia in 2009 and the failed bid to buy Lloyds Banking Group branches.
The report is the latest stage in the battle to uncover the truth about how the Co-op Bank almost collapsed after discovering a £1.5bn black hole in its balance sheet.
Earlier this month the bank posted a loss of £1.3bn for 2013 and revealed a £411m redress bill.
The BBC’s business editor Kamal Ahmed says Sir Christopher’s report is “scathing” and found the Co-op Bank board did not have “their eye on the ball” during the takeover of the Britannia.
The findings are set to be challenged by former members of the board, who will write to Sir Christopher this week to claim the report is not factually accurate.