Co-op to pull out of banking - completely

innovate

moreover, the Coop have said

We remain committed to driving The Co-operative Group forwards under our clear strategy and, as part of that, we will continue to develop our Bank for the long-term, offering a real alternative on the high street with our strong, established brand and our reputation as a trusted financial services business.

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

antrobus

More detail on Peston's blog here:-

http://www.bbc.co.uk/news/business-22276390

The key bit is this:--

And here is perhaps the most telling fact. The Co-op was buying a bank from Lloyds that is far better capitalised than its existing bank, so it would actually have been strengthened, in a prudential sense, by buying the 632 TSB branches and £25bn of deposits.

antrobus

Stuart_W wrote: »

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.

That's what I said.

antrobus wrote: »

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The Co-operative Group announces that it has withdrawn from the process currently being run by Lloyds Banking Group for the disposal of branch assets...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

Stuart_W

antrobus wrote: »

That's what I said.

What you did was post the word "confirmed" at the beginning of a post on a thread titled "Co-op bank to pull out of banking completely".

In a riduculous world of one-line rumours on twitter, that's how misunderstanding spreads quickly. The OP was suggesting a run on cash withdrawals at the Co-op bank. That's madness.

antrobus

Stuart_W wrote: »

What you did was post the word "confirmed" at the beginning of a post on a thread titled "Co-op bank to pull out of banking completely".

In a riduculous world of one-line rumours on twitter, that's how misunderstanding spreads quickly. The OP was suggesting a run on cash withdrawals at the Co-op bank. That's madness.

Now you're being very silly. I suggest you read the whole post first, before getting your underwear all tangled.

Stuart_W

Co-op Group's twitter feed is making their view clear:

Addiscomber

Oh dear!!
Where would the Labour Party get a massive overdraft from if The Co-op did pull out of banking?

antrobus

Stuart_W wrote: »

Co-op Group's twitter feed is making their view clear:

Well they would say that anyway.

Previously the Co-op were similarly "committed" to going through with the Lloyds deal. And look what happened.:)

itsgazza_2

Oh Dear Antrobus,

what have the Co-op done to upset you ?

It is clear that Robert Peston was speculating about the future of the Co-op with little regard for the consequenses of his report. He has added the following today :-

UPDATE 8:35 BST
To be clear, the Co-op isn't going to withdraw from banking tomorrow, so there is no reason for Co-op depositors to feel they are going to be left high and dry.
The outgoing chief executive, Peter Marks, says the Co-op will develop its banking operation over the long term.
But I understand there is a possibility it will get out of the business in an orderly way, after the new chief executive, Euan Sutherland, has had a chance to review it.

pqrdef

antrobus wrote: »

Well they would say that anyway.

Of course they would. But it's obvious nonsense. Acquiring TSB was the key to strengthening the brand.

Peston doesn't go on air with random speculations. He's been told something, off the record.

In any case, the coded message is obvious. If they can't meet the regulatory requirements with TSB, it won't be easier without.

The only thing left for the Co-op Bank is to merge with Nationwide.

Another triumph for competition policy.