`Euan Sutherland ` quits his post without rescuing the 170 year-old Co-Operative Group ‘

#AceFinanceNews (Reuters) – Euan Sutherland, the man tasked with rescuing Britain’s 170-year old Co-operative Group, quit on Tuesday and warned it was impossible to reform the mutually owned company unless its directors adopted a more commercial approach.

The Co-op, which runs a bank, supermarkets, and funeral homes, suffered what Sutherland called the worst year in its history in 2013 when it discovered a 1.5 billion pound ($2.5 billion) capital hole in its banking business.

Problems at the group, which is owned by its 7.2 million members and extols an ethical approach to business, were compounded by a drugs scandal involving the bank’s ex-chairman, Methodist minister Paul Flowers who had little financial experience.

Sutherland wanted to reform the group’s unwieldy governance structure to bring a higher level of corporate experience to the group. It has a tangle of boards populated by members elected from regional units of the organisation.

But after 10 months in the job, he tendered his resignation on Monday in a letter saying the Manchester-based group was “ungovernable,” a source said earlier.


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` BOE Governor ` Mark Carney ‘ signals he is not concerned that Britain’s Economy was close to Overheating ‘

#AceFinanceNews (Reuters) – Bank of England Governor Mark Carney signalled he was not concerned that Britain’s economy was close to overheating, despite a strong recovery since last year, putting himself in the dovish camp among policy-makers.

Speaking to lawmakers on Tuesday, Carney said the amount of spare capacity in the economy was probably slightly more than 1.5 percent of gross domestic product, suggesting the BoE can hold off on raising interest rates for longer.

Carney also said Britain’s natural rate of unemployment could be less than the Bank has estimated, meaning the labour market can strengthen further without pushing up inflation.


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