Co-op to pull out of banking - completely

50Twuncle

Just heard the news - Co-op is to pull out of banking completely
I used to bank with them - but moved to Nationwide / Coventry, a few years ago - I bet that there will be a run on withdrawals now ??

mrmajika

Have you a source for this? I can see that the LTSB branch sale has fallen through and I note that they're reviewing their banking business, but nowhere do I see that they're pulling out of the sector.

Either way, I'd imagine a run on the bank would be unlikely. The Co-operative setup is different to other banks and relatively solvent.

john1002

It was a final piece by robert preston that say sources say they may pull out, it is hard to believe that the goverment would allow this considering it is now due to the bad times that there considering it, ie more reglutory and worsening economic conditions. Also the logistics who would take over credit cards, loans, banking etc

Just cant see it happening to be honest but then stranger things have happened.

john

antrobus

It appears that Robert Peston is reporting that the Co-Op is going to pull out of the deal to buy the 632 Lloyds branches, and along the way says "there is a very big chance that the Co-op would pull out of banking all together".

http://www.bbc.co.uk/news/business-22276319

Stuart_W

21Twinkle wrote: »

I bet that there will be a run on withdrawals now ??

Only if there are hundreds of other people spouting nonsense over the internet and social media like you have done on this thread.

As stated above, Robert Peston has reported that the Co-op may consider a phased withdrawal from banking once the co-op group's new chief executive arrives next month.

It's a sensible and prudent thing for any organisation to review their businesses regularly. If the Co-op decide to pull out, and it is a very big if at this stage, it will be a slow phased process over to a new owner.

Stop trying to instil panic.

antrobus

Confirmed.

The Co-operative Group announces that it has withdrawn from the process currently being run by Lloyds Banking Group for the disposal of branch assets...

http://www.co-operativebankinggroup.co.uk/servlet/Satellite?c=Page&cid=1357284286482&pagename=Corp/Page/tplCorp&currart=1366778903469&currmth=04

gb12345

So rather than the done job that the OP is posting about it is speculation by a BBC journo.

If it did happen then the bank wouldn't just close, their would likely be another sell off to join the RBS and TSB branches.

innovate

john1002 wrote: »

..... it is hard to believe that the goverment would allow this

The government could encourage them not to pull out but have no say in the decision.

antrobus

mrmajika wrote: »

.. The Co-operative setup is different to other banks and relatively solvent.

No, the Co-operative setup is exactly the same as other banks. The only difference is that the Co-Op Bank only has one shareholder, the Co-Op Group.

Stuart_W

antrobus wrote: »

Confirmed.

Pack it in. It is NOT confirmed that the Co-op is withdrawing from banking - what the OP stated at the top of this thread.

It is only confirmed that the Verde deal has collapsed.

michael1983l

Even if Co-op pulled out of banking, it wouldn't be due to collapse. They would sell the Business assets and accounts on to another bank and your account and money would be safe.

To be honest I cannot see them doing this after recently aquiring Britannia and that other bank I forget the name of.