Partly Cloudy

Partly Cloudy

max temp: 4°C

min temp: 3°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

The main terminal building at Stansted Airport

Budget airlines easyJet and Ryanair have each announced a new route from Stansted Airport.

James Cooper, centre, of Survey Solutions, with Robertt Mullins, left, and  Jeff Bate of East Anglian Land Surveys.
Photo: Paul Nixon

East Anglia’s largest independent firm of surveyors has consolidated its position with the purchase of another Suffolk-based business.

Morrisons in Stowmarket.

The Morrisons supermarket in Stowmarket will close on April 3, it has been announced.

PCA England masters players, from left,  Paul Nixon, Matthew Hoggard, Mark Ramprakash and Alistair Brown at Lord’s celebrating Greene King's new partnership with the association.
Photo: portraitcollective.com/Sam Bowle

Greene King has agreed another major cricket sponsorship deal, this time in support of the game at grassroots level.

The BT apprenticeship showcase evening

More than 200 students, parents and teachers gathered at BT Adastral Park in Martlesham for the company’s apprenticeship showcase on Wednesday.

Most read

Fred Olsen Travel Sale

cover

Click here to view
the Fred Olsen
Travel Sale

View

Most commented

HOT JOBS

Show Job Lists

Topic pages

Streetlife

Great British Life

Great British Life
MyDate24 MyPhotos24