The Co-op bank has put itself up for sale this week and inviting offers to buy all of its shares. So, if you have a lot of money you wouldn’t mind going down the toilet, keep reading.
The bank almost collapsed in 2013 but was bailed out by US hedge funds. The four million customers and stakeholders advertise its “a strong franchise with significant potential” for perhaps speed in which loss-making can be achieved. The bank does however have a ethical style of management and a strong CSR report which is useful when you’re in court with mounting debt.
Because of low interest rates, the bank has found tremendous difficulty in strengthening its poor financial position. A spokesman for something in England welcomed the move, in which the bank thanked him and offered him a share, which the man declined.
At the moment, the TSB told the BBC that it would be interested in the purchase if the price was right. The TSB is known for their last purchase of Lloyds, in which they have since split.
The Co-op Bank merged with the Britannia building society in 2009, a move that was commonly blamed for the near collapse of the bank. Four years later the bank revealed that they had misplaced £1.5bn, as CEO’s began checking their pockets. This was called “The Black Hole”. The bank was then saved, but chairman Paul Flowers stepped down after his expenses began to correlate with the black hole. Next year, Mr Flowers was caught with illegal flowers, and plead guilty to drug possession.
In the autumn of 2015 the Co-op Bank said it would remain loss-making until the end of 2017.
“While our plan has been impacted by lower for longer interest rates, the costs associated with the sheer scale of the transformation and the legacy issues we faced in 2013, there is considerable potential to build the bank’s retail franchise further using the strength of the brand, its reputation for strong customer service and distinctive ethical position.”
The bank, since its close collapse has however made considerable steps for its turnaround plan, claiming they’re deliberating ways to raise finance. One way they claim is raising funds from existing and new shareholders and stakeholders.
Separately, it says it has resolved a key contractual differences with Capita.
Western Mortgage Services, part of Capita, will continue to provide mortgage administration services and new mortgage application processing for the bank and its clients.