Co-op black-hole lost opportunity for major new UK bank
THE chance to create a major new UK bank was wasted because advisers and regulators failed to discover the Co-op Bank’s £1.5billion black-hole before it was too late.
In a report into the Co-op’s £750million bid to buy 632 branches from Lloyds Banking Group, Treasury Select Committee chairman Andrew Tyrie said the Co-op ’s board was an “accident waiting to happen”.
He added: “Co-op Bank’s governance structure was not fit for purpose for any bank, let alone one bidding to become a major challenger in the UK market.
Co-op Bank’s governance structure was not fit for purpose for any bank, let alone one bidding to become a major challenger in the UK market
“Each of the backstops, Co-op Bank itself, KPMG as its auditor and regulator FSA failed to uncover the bank’s capital shortfall until it was too late. An opportunity to establish a significant new bank was lost.”
MPs found no evidence that politicians swayed the 2012 decision by Lloyds to choose the Co-op over rival bidder NBNK Investments.
KPMG in sis ted that it provided “robust audits which challenged the judgments and disclosures proposed by the bank’s management”.
The Co-op Bank said it apologised for past failures but had since undergone complex restructuring.