` Co-Operative Bank Confirms Loss of £1.3 billion According to `CEO Booker ' Who Will Earn £2.9 Million as Pay Package '

#AceFinanceNews – BRITAIN – April 11 – (BBC) – The Co-operative Bank has confirmed it made a loss of £1.3bn for 2013.

The losses, in line with expectations, come after the bank’s failed bid to buy 632 branches from Lloyds Bank last year.

The deal collapsed after the discovery of a £1.5 Billion black hole in the Co-op Bank’s balance sheet.

Parent company the Co-operative Group lost control of the bank to a group of US hedge funds that launched a rescue deal in December.

The bank said it did not expect to make a profit in 2014 or 2015.

It also apologised to its 4.7 million customers.

Co-op Bank chief executive Niall Booker said: “We appreciate that customers and other stakeholders continue to feel angry about how past failings placed the future of the business so seriously at risk.

“I would like to apologise to them, to thank them for their continued loyalty and to thank colleagues for their commitment during such difficult times.”

The bank said it would not pay out £5 million to former executives who left the bank after its near collapse last year.

But Mr Booker will receive a £2.9 million pay package, which includes a basic salary of £1.2 million and up to £1.7 million in performance related bonuses.

Mr Booker could also receive a potential £1.2 million as part of a three year incentive plan based on the future performance of the business.

It said up to 40 of its high street branches will close this year, which is likely have an impact on jobs, although the bank has yet to put a figure on the number of posts under threat.

The results were published after two earlier delays.

Read More: http://www.bbc.co.uk/news/business-26967020

IBT reported that the Former HSBC banker Niall Booker has taken over as leader of Britain’s Co-operative Group, after ex-CEO Barry Tootell stepped down in the wake of suggestions by ratings agency Moody’s that the Co-op’s banking operation may need a government bailout.

Booker will take charge of the group’s finance arm Co-operative Bank, and become deputy chief executive of The Co-operative Group, on 10 June.

He was previously the head of HSBC’s North America business until stepping down in 2011, after 30 years with the bank.

Earlier this month, Moody’s slashed the bank’s debt rating to junk status, due to concerns that the Co-operative Bank has a £1.8bn (€2.1bn, $2.7bn) black hole in its balance sheet http://www.ibtimes.co.uk/co-op-barry-tootell-niall-booker-471772

#AFN2014

#bank, #britain, #co-op, #co-operative-bank, #co-operative-group, #hsbc

`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.

#AFN2014

#britains, #co-op, #co-operative-group, #euan-sutherland, #manchester, #reuters