Sunny

Sunny

max temp: 23°C

min temp: 15°C

ESTD 1874 Search

Banking: PRA to launch enforcement investigation into the Co-operative Bank

18:16 06 January 2014

The Co-operative Bank  is to be the subject of an enforcement investigation by the Bank of England

The Co-operative Bank is to be the subject of an enforcement investigation by the Bank of England's Prudential Regulation Authority (PRA).

The Co-operative Bank is to be the subject of an enforcement investigation by the Bank of England’s Prudential Regulation Authority (PRA).

shares

The regulator said the probe would “consider the role of former senior managers” at the lender, which underwent a rescue last year after a £1.5billion black hole was discovered in its finances.

The shortfall was widely attributed to problems arising from the takeover of the Britannia building society and the failed bid to acquire more than 600 branches from Lloyds. Questions about the management of the bank were also raised following drug revelations surrounding former bank chairman Paul Flowers. The Financial Conduct Authority said it was also undertaking enforcement investigations into the bank, looking at “decisions and events up to June 2013”. The PRA said no further details of its probe would be published until it reached its conclusions. A separate review announced by Chancellor George Osborne will not begin “until it is clear that it will not prejudice any actions that the regulators may take”.

The PRA indicated it would co-ordinate timings of the separate probes with the Treasury. It is the latest round of scrutiny to be faced by the bank and the wider Co-op group, and the first formal confirmation of official regulatory probes. It is understood that investigations will look into events as far back as 2006, with a wide range of penalties available should regulators find wrongdoing, including unlimited fines. Issues such as the capital shortfall and the level of due diligence ahead of the Britannia deal will come under scrutiny, as well as the timing of disclosures to markets and regulators about the problems the bank was facing. Individuals found responsible for breaches could be declared not fit and proper to hold positions in businesses regulated by the PRA – which oversees banks, building societies, insurers and other financial firms.

shares

0 comments

Dame Fiona Kendrick:, chief executive of Nestlé  UK & Ireland

Food giant Nestlé has announced plans to close its defined benefit pension scheme, sparking the threat of industrial action.

The Treasury has sold another 1% stake in Lloyds Banking Group.

The taxpayers’ stake in Lloyds Banking Group has fallen to below 16% after the Government sold off another tranche of shares.

The installation of solar panels on the roof of Precision Marketing Group's premises in Lamdin Road, Bury St Edmunds

A Suffolk-based firm will be among the organisations taking part in a nation-wide celebration of solar energy tomorrow.

Candy Gaga'’s Wanda Hewell, right, and daughter, Cherish.

Tower Ramparts in Ipswich now has its very own castle – thanks to the success of a local sweet shop business.

Stansted Airport

A report into the future of Britain’s airports does not rule out a second runway at Stansted – and raises fears of extra night flights to the Essex airport.

Growth in manufacturing eased last month  to its slowest level in two years.

Britain’s manufacturing sector grew at its slowest pace in more than two years last month, impacted by subdued demand from Europe.

Speedy Hire
 has warned that its results for this year will come in

Tool rental business Speedy Hire saw nearly a third of its stock market value wiped off after it announced the shock departure of its chief executive and warned over a major blow to full year profits.

Greene King chief executive Rooney Anand.

Pubs and brewing group Greene King today posted another year of record revenues, with sales within its key Retail division topping £1billion for the first time.

Suffolk Coastal considers convenience store bid

Planning chiefs have responded to concerns about noise and antisocial behaviour arising from proposals for a new convenience store in Kesgrave by insisting on closing times being brought forward an hour and the installation of a barrier to restrict overnight parking.

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.

Most read

Most commented

Topic pages