Timeline: What’s been happening at the Co-operative Bank?

A number of key events have led to the Co-operative Bank announcing proposals to float on the stock exchange . . .

A number of key events have led to the Co-operative Bank announcing proposals to float on the stock exchange . . .

August 2009
After almost a year of talks, the Co-operative Bank and Britannia merge. CFS Chief Executive Neville Richardson says it was the “next step in the renaissance of the co-operative and mutual sector”.

August 2011
Two years later, the Co-operative Group announces its intention to bid for 632 Lloyds branches.

December 2011
Lloyds board choose the Co-operative Group proposal.

July 2012
Group agreed “heads of terms” to purchase the branches. Chancellor George Osborne praises the deal, saying this creates “a new challenger bank”.

December 2012
Lloyds found out about a capital shortfall at the Bank.

March 2013
Bank reports a loss of £257m in 2012, with debts from Britannia to blame. Life insurance, asset management and general insurance businesses are to be sold.

April 2013
Group withdraws offer for Lloyds, with Chief Executive Peter Marks citing a “worsened outlook” in the economy and “increasing regulatory requirements”.

May 2013
Moody's downgrades the Bank’s credit rating by six notches and the Bank’s Chief Executive Barry Tootell resigns. Former HSBC executive Niall Booker is named as his replacement. Euan Sutherland becomes Chief Executive of the Co-operative Group and makes major changes to the Group’s executive. Banking Group Chair Paul Flowers steps down and is replaced by Richard Pym, Chair of UK Asset Resolution. Richard Pennycook takes over as the Group’s Finance Director following the departure of Steve Humes.
13 June 2013
Treasury Committee announces inquiry into the collapse of ‘Project Verde’.

15-16 June 2013
Co-operative Group negotiates with the Prudential Regulation Authority over a ‘capital action plan’.

17 June 2013
Group announces a shortfall in capital of £1.5 billion. The Bank will float on the London Stock Exchange and raise funds from bondholders, the divestment of Co-operative Insurance and capital from the Co-operative Group.

18th June 2013
Treasury Select Committee hosts evidence session into the collapse of Verde. Lloyds says it discovered the capital hole in December.

20th June 2013
Prudential Regulation Authority indicates that UK banks needed to plug an overall capital hole of £27 billion.

October 2013
Full details of the rescue package and cost to bondholders will be unveiled, alongside a floatation of the Bank.

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