The Co-op Bank puts itself up for auction

Company - Mohit Shah - Feb 13,2017

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the co op bank puts itself up for auction

The Co-op Bank declared that it is placing itself up for sale and is inviting bids to buy its total shares.

The bank is 20% owned by the Co-operative Group. During 2013, it almost collapsed and was rescued by US hedge funds.

Since that phase, the bank hasn’t been successful in strengthening its finances due to low-interest rates.

Presently, the bank has four million customers, which is famous for its ethical standpoint.

A spokesman for the Bank of England's Prudential Regulation Authority stated it welcomed the act which was announced by the Co-operative Bank.

"We will continue to assess the bank's progress in building greater financial resilience over the coming months," was further added by the spokesman.

Among the potential buyers, TSB has commented that it would be interested if the cost was right.

The Co-operative Bank collaborated with the Britannia building society in the year 2009. The merger was later held responsible for the near downfall of the bank.

In 2013, the bank discovered a £1.5bn black hole in its accounts, which eventually led to its rescue. Further, the bank chairman Paul Flowers also left the seat over concerns related to expenses in 2013, before pleading guilty to the charges of drug possession the following year.

The problems didn’t curb as the Bank of England banned two former Co-operative Bank executives from possessing senior banking positions in January 2016.

In the autumn of 2015, the Co-op Bank stated it would continue to make a loss until the end of 2017.

Bank chairman, Dennis Holt said: "Customers value the Co-operative Bank and our ethical brand is a point of difference that sets us apart in the market”.

The bank further said, it has made significant progress in bringing its continuing turnaround plan. Moreover, Co-op Bank is also seeking ways to raise funds for current and fresh providers.