View more on these topics

FCA and PRA to investigate Co-op Bank’s £1.5bn capital black hole

The FCA and Prudential Regulation Authority are launching enforcement investigations into the Co-operative Bank.

The Co-op Bank was forced to withdraw a bid to buy 632 Lloyds Banking Group last year when it discovered a £1.5bn capital black hole.

The PRA investigation will consider the role of former senior managers. No further information will be provided on the investigation until the legal process has concluded and an outcome has been reached.

The PRA and FCA investigations are the latest in a long line of other inquiries into the Co-op Bank’s problems including an internal review, an independent Treasury-commissioned inquiry and a Treasury select committee inquiry into the failed Lloyds’ branches bid.

The independent review will only take place once regulatory investigations are complete and will look into all issues around the bank.

FCA director of supervision Clive Adamson is being grilled by MPs tomorrow morning over his role in supervising the Co-op Bank’s troubles.

There is also a police investigation into former Co-op Bank chair Reverend Paul Flowers over drug allegations last year.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. That should take all of a good hours conversation with Griffiths-Jones (ex KPMG) !! they could even do it over a cup of tea in the canteen @ budgie tower block !!

    Probably find out that KPMG were more than happy to take the 7.5 million a year fees they charged the co-op for their “very robust” (haha) auditing services !!

    “Carpet swept and under” spring to mind

  2. There is a serious problem over timing. These inquiries can role on with regulators using them as a reason not to comment

  3. So of what value are the regulator’s half-yearly RMA returns and accounts if a black hole went undetected until it had ballooned to £1.5Bn and the Co-op realised it was in sherbert of the deepest kind?

    Never mind ~ the RDR will sort out all sorts of things like this and we’ll all live happily ever after in a world in which nothing ever goes wrong.

  4. GP Styles (GPS Economics) 6th January 2014 at 4:34 pm

    If it is anything like the HBOS report I would guess we might see a report by around 2021. Time is a great weapon for regulators, lenders and politicians alike…. not much help to customers and investors though.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com