Partly Cloudy

Partly Cloudy

max temp: 21°C

min temp: 19°C

ESTD 1874 Search

Banking: Co-operative Bank key failings are revealed

10:24 30 April 2014

A report on the near-collapse of the Co-operative Bank has identified failings during and after its ill-fated merger with the Britannia Building Society.

A report on the near-collapse of the Co-operative Bank has identified failings during and after its ill-fated merger with the Britannia Building Society.

A damning report on the near-collapse of the Co-operative Bank has laid the blame on executives running the business in the wake of its ill-fated merger with the Britannia building society.

shares

Sir Christopher Kelly, author of the review, said: “This report tells a sorry story of failings in management and governance on many levels.”

The former Treasury mandarin was asked to investigate after the bank was found to have a £1.billion hole in its balance sheet.

His long-awaited report found “overwhelming” evidence that Britannia chief executive Neville Richardson, who took over as boss following the 2009 merger, failed to leave the new business “in a good position” when he departed in 2011.

It also said the culture of the bank was partly to blame, with a “willingness to accept poor performance” and a “tendency not to welcome challenge”.

The board of the wider Co-operative Group, led at the time by Peter Marks, also came in for criticism for failing properly to oversee the bank and badly letting down the group’s millions of members.

Sir Christopher said: “The roots of the shortfall lie in a merger between the bank and the Britannia building society which should probably never have happened. Both organisations had problems. Bringing them together exacerbated those problems. It might have worked if the merged organisation had first class leadership. Sadly it did not.”

In response, current Co-op Bank chief executive Niall Booker apologised for “past failings” and said it had been “working diligently” to address them.

The bank is appointing new auditors, Ernst & Young, ending a 40-year relationship with KPMG.

shares

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

Tim Dunford, managing director and master brewer at the Green Jack Brewery, third from left, with Beer for Summer judges Mark Dorber, left, and Charlie McVeigh of The Draft House, right, and Peter Gordon, on trade director of Budweiser Budvar.

A Suffolk brewing company is celebrating after winning a new national “Beer for Summer” competition.

The Bishop Of Ely, the Rt Rev Stephen Conway, centre, at the hospice site dedication in Cambridge with Mark Hart, construction director at Barnes Construction, right,  and Stuart Evans, chair of the trustees of the Arthur Rank Hospice Charity.
Photo: Paul Nixon Photography

An act of dedication has taken place to mark the start of contruction work on a new £10.5million hospice in Cambridge, which is being built by Ipswich-based Barnes Construction.

Ian Carr, chief executive of Prettys

Regional law firm Prettys has reported a 13% increase in revenue for the year to April 30.

Oliver Crichton and Ruth Sunaway of Birketts.

East Anglian law firm Birketts has announced the promotion of five senior associates to partner status across its four offices, including Oliver Crichton and Ruth Sunaway in Ipswich.

The Lord Lieutenant of Suffolk, Clare, Countess of Euston, presents the Queen's Award for Enterprise to Seafast.

Specialist logistics company Seafast was yesterday presented with the Queen’s Award for Enterprise.

Ipswich Station hanging baskets Shows (L-R) Jackie Rathbone, Abellio Area Ticket Office Manager; Kris Collins, Thompson & Morgan Comms Officer;  Ric Staines ActivGardens Lead Horticulturist and Trainer,

Stunning floral displays are welcoming passengers at Ipswich, Stowmarket and Diss rail stations this summer thanks to a partnership between local charity ActivLives and train operator Abellio Greater Anglia, with help from Ipswich’s own horticultural company Thompson & Morgan.

Carolyn Fairbairn, who is to become director general of the CBI.

A former member of the Number 10 Policy Unit is to become director general of the CBI.

Spending on drinking and eating out remained robut during May, according to the latest Greene King Leisure Spend Tracker report.

Most Britons are planning to holiday in the UK rather than overseas as they continue to monitor their spending carefully, according to a new survey.

Bury St Edmunds coffee company Frank and Earnest is among more than 100 start-up firms to have received support under Menta's Enterprise Engagement Programme.

Bury St Edmunds-based enterprise agency Menta has completed a project to support start-ups during their first year in business.

Lieutenant Aaron Lewis from Rochford, who was killed in Afghanistan in 2008 and in whose memory the Aaron Lewis Foundation has been established to support llocal and military charities through sporting and social endeavours.

The regional arm of David Wilson Homes has raised £17,000 at a golf day, held at Stoke by Nayland, for a charity set up in memory of a soldier.

Most read

Most commented

Topic pages