View more on these topics

Tory MP calls for TSC to investigate Co-op ‘blow up’




Conservative MP Brooks Newmark is pushing for the Treasury select committee to investigate the Co-operative Bank over major capital shortfalls and its failed bid for Lloyds Banking Group branches.

Earlier this month, Co-op Bank chief executive Barry Tootell quit immediately after Moody’s downgraded the bank to junk status and warned it may need taxpayer support after heavy losses on Brittannia Building Society loans. The Co-op group has ordered a strategic review of the firm in an effort to plug the hole.

The news came just weeks after the Co-op pulled put of a deal to buy 632 Lloyds Banking Group branches, citing the poor economic climate.

TSC member Newmark says: “This is another blow-up in the financial services sector and the TSC should be looking into it so I will be pushing for that.

“Someone is to blame and it is a combination of the regulator, the Bank of England and poor financial management.”

Newmark joined rival bidder and former NBNK chair Lord Peter Levene in questioning the wisdom of awarding Co-op the deal to buy the Lloyds branches and demanded to know what due diligence was done on the bank.

Banking consultant Mehrdad Yousefi says: “The TSC should certainly look into the Co-op branch deal. It is astonishing the firm was chosen to buy the branches and shows that the regulators are not doing their job.”


CML: Remortgaging at lowest levels for 15 years

Remortgaging levels remain muted as last year saw the lowest number of borrowers choosing to refinance since 1997, according to the Council of Mortgage Lenders. The CML’s figures show that in 2012, remortgaging accounted for 316,000 loans worth £41bn. Of a total of 6.9 million regulated mortgages taken out since 2005 and still active in […]

Celebrities and footballers ‘victims of £125m film investment tax fraud’

A number of celebrities, bankers and football stars have been caught up in an alleged £125m tax fraud that revolved around film investments. According to the Mail on Sunday, West Ham United manager Sam Allardyce, Princess Diana’s former butler Paul Burrell and pop singers Mike Skinner of The Streets and Damon Gough, also known as […]

Tony Wickenden: GAAR guidance gives some certainty

Last week I started to look at the new Guidance Notes on the general anti-abuse rule and, in particular, the examples given to illustrate how the GAAR is likely to be applied in relation to the taxes within the scope of its coverage. The examples in Section D of the guidance are very helpful and […]


Japanese stocks tank 7% after Bernanke says QE may slow

Japanese stockmarkets have plunged at the highest rate since the March 2011 tsunami and nuclear disaster after the Federal Reserve suggested it could start to slow its bond-buying programme. Japan’s Topix index dropped by almost 7 per cent to 1,188.34 points overnight while the Nikkei 225 closed 7.3 per cent down at 14,483.98. Every company […]


Guide: reporting to the Pensions Regulator — what and when?

Johnson Fleming has published a step-by-step guide demonstrating the importance of record keeping and reporting, and how it can ensure you operate a successful scheme. The guide takes you through some key questions you need to ask and identifies the information you need to obtain. The topics include: why you need to keep records and the benefits of doing this; registering your scheme; what information you need to record to ensure you meet the Pensions Regulator’s requirements; and what items need to be recorded and when.


News and expert analysis straight to your inbox

Sign up


There are 3 comments at the moment, we would love to hear your opinion too.

  1. If I remember it right wasn’t it a subsidiary of Britannia that was lending heavily to the buy to let market. When will politicians learn that over stimulating the property market always comes back to haunt you.

    The new help to buy scheme although on the service good news for the consumer could in fact be the next big forerunner to a much larger financial crisis if regulators take their eye off the ball and insist that mortgage brokers and lenders adhered to sensible lending rules.

    In some ways I do feel sorry for Banks & Building Societies as they had been told by politicians to lend to make them re-elected of and also act responsibly by keeping capital adequacy. Those two objectives are not compatible.

  2. As usual Government policy; pension transfers, low cost endowments (developed to boost home ownership) and lending to those that shouldn’t be lent to (again to boost home ownership) has led to financial meltdown.

  3. Julian Stevens 3rd June 2013 at 7:56 pm

    This looks like yet another train wreck that the FSA should have seen coming and averted. But it was evidently too busy building into its RDR endless unforeseen problems. That’s what you get when an unregulated monster is allowed free rein to do whatever it wants without having to account to anyone.

    And now that the FSA has been rebadged, who if anyone will be held to account?

Leave a comment


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