blythburgh wrote:... the story should not have been run in the way it was.
This kind of true but misleading story is only but a step away from lying or reporting lies as if they were true.
I don't think you quite get it.
In 2009 the Co-Op bank took over Britannia. In 2012 the Co-Op bank wanted to buy a chunk of Lloyds Bank. In the 2013 they withdrew from that deal, shortly after reporting a loss of £600m, and it turned out that they needed an extra £1.5bn worth of capital. They blamed it all on the Britannia deal. The Co-Op bank only survived because of a deal with a bunch of hedge funds that ended up owning 80% of the bank. That bloke Niall Booker was busy trying to turn things round.
The problem is that the Co-Op bank has consistently been losing money ever since. It lost more money in 2015 than it did in 2014.Its latest results for the half year to June 2016 showed a loss of £177m, and that was after making a £58m profit on flogging their share of Visa Europe. It is expected to make a loss on 2017. As a result its capital is shrinking.
As the statement goes.
“The Bank is updating its previous guidance and now expects its CET1 ratio will fall and remain below 10% over the medium term and that it is unlikely to meet its individual capital guidance over the planning period to 2020. The Bank continues to expect to meet its Pillar 1 capital requirements and to maintain sufficient liquidity to meet its obligations”http://www.co-operativebank.co.uk/asset ... ce-RNS.pdf
If this carries on, eventually the PRA might have to do something. Or maybe given another couple of years it will sort itself out, and those hedge funds will be able to sell to some Spanish bank. But there is a real risk that might not happen.