Co-Op Bank - Should we be concerned?

sbradnam

I switched to the Co-op about a year ago - service has been very good, but I am wondering if they are in serious trouble, and would appreciate some informed views.

Lloyds sale cancelled
CE resigns/leave
Selling off arms of business left right and centre

What do we think?

Stuart

pmduk

I'd say no, even in the incredibly unlikely event anything untoward happened, the FSCS covers you for the first £85k.

In the past few years, Santander has changed CEOs, and cancelled the RBS purchase. None of it implied the bank was fundamentally unsound financially.

innovate

Look what happened to some bank that didn't cancel the purchase of another bank.....and where the CEO didn't leave until he was forced out....

If you can measure the safety of a bank by their acquisitions (or lack of) and/or the change in Executives, then the Coop is probably a top bank.

However, as a consumer, all you should be concerned about is that you don't have more than £85K in any single financial institution.

To cater for any short term issues that can happen with absolutely any bank, it is prudent to have your own backup - - e.g. another current account, or instant access savings account, with another financial institution, a credit card etc.

manzanilla

If you can measure the safety of a bank by their acquisitions (or lack of) and/or the change in Executives, then the Coop is probably a top bank.

Absolutely not - it was their disastrous take over of Brittania that has caused their current problems....

However, if you have a bank account, mortgage or savings with them, you don't need to be worried if you are under the £85k limit.

If you have PIBS or preference shares then you need to be very concerned - this bulleting board has lots about them: http://boards.fool.co.uk/banking-sector-50033.aspx?mid=12824331

opinions4u

adindas wrote: »

Britannia is also part of Coop and they are doing it very well in term of mortgage product.

If you did a little more research you'd find out that poor quality Britannia lending (albeit to non-traditional customers) is what has done for Co-op. If they'd not merged Co-op Bank would be a lot stronger today.

rb10

sbradnam wrote: »

Selling off arms of business left right and centre

The sales are just strengthening their position.

Lloyds sold off a massive part of their business last week for the same reason - get rid of the risk, putting yourself in a better place.

pqrdef

Looks like a closing down sale to me.

Acquiring TSB would have strengthened their position.