New structure “a tragedy”, says former Co-op CEO
0The Co-operative Group said this week that it had no comment as yet for local authorities on developments that see the Co-operative Bank being taken into 70% ownership by investors including US hedge funds.
The new plans are very different to proposals put forward by the Co-op in June that would have seen the Group retain 70% control, put in £1bn of capital itself and float the bank. The head of the Co-op Group, Euan Sutherland said on Monday that, with a 30% stake, the group would remain the largest single shareholder in the bank.
Sutherland added that the Co-op would be the first bank to be rescued and survive as a stand-alone entity without taxpayer money.
Speaking to the Treasury select committee on Tuesday Peter Marks, former chief executive of the Co-operative Group, said that loss of group control over the bank was “a tragedy”. Tuesday also saw the announcement that group chairman Len Wardle is to resign.
