UK. Co-operative Bank agrees £700m rescue package
Investors have agreed to swap their debt for a stake in the bank.
The bank also said it would to separate its pension fund from the Co-operative Group’s scheme, which has £8bn of liabilities.
The Bank of England’s Prudential Regulation Authority said it had accepted the plan to return the bank to a firm footing.
“Supervisors will remain closely engaged with the bank while the actions announced today are taken forward. Implementation is subject to certain regulatory approvals,” said the PRA, which is responsible for supervising the UK’s banks and insurance companies.
The debt-for-equity swap with hedge funds means that the Co-op Group’s stake in the bank will fall from 20% to about 1%.
The Co-op also said that the relationship agreement between the group and the bank, covering the promotion of bank services to members of the wider business and other matters, “will naturally fall away and come to a formal end in 2020”.
Full Content: BBC News
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