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Co-Op Rescue plan launched

antrobus
antrobus Posts: 17,386 Forumite
in Debate House Prices & the Economy
Co-op Bank has announced details of its plan to plug the "£1.5bn hole" in its balance sheet - bond holders will be obliged to exchange their bonds for shares, with the Co-operative Group itself also throwing in some extra money.

http://www.bbc.co.uk/news/business-22932330
«13456

Comments

  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    Another group of widows and orphans getting shafted.

    Bail outs are for the rich.
  • wotsthat
    wotsthat Posts: 11,325 Forumite
    Generali wrote: »
    Another group of widows and orphans getting shafted.

    ...and by a company that makes group pre-tax profits of around £400m.

    Nice people.
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    wotsthat wrote: »
    ...and by a company that makes group pre-tax profits of around £400m.

    Nice people.

    Never mind they can always make up the shortfall on the departure business.;)
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • pqrdef
    pqrdef Posts: 4,552 Forumite
    grizzly1911 wrote: »
    Never mind they can always make up the shortfall on the departure business.;)
    I heard there was a deep hole there as well.
    "It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Could be nationalised yet. The bondholders have to agree to this deal, and it appears they are not very forthcoming.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Graham_Devon wrote: »
    The bondholders have to agree to this deal, and it appears they are not very forthcoming.

    That would result in a total loss of investment. Between a rock and a hard place.
  • MacMickster
    MacMickster Posts: 3,646 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    grizzly1911 wrote: »
    Never mind they can always make up the shortfall on the departure business.;)

    So the bond holders will end up 'coffin' up for the shortfall?
    "When the people fear the government there is tyranny, when the government fears the people there is liberty." - Thomas Jefferson
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    wotsthat wrote: »
    ...and by a company that makes group pre-tax profits of around £400m.

    Nice people.

    and the banking division......
    The Co-op Bank has suffered a tough period. In March, the bank reported a £673.7m loss for the year to 31 December 2012

    2013's results aren't going to be good either.
  • worried_jim
    worried_jim Posts: 11,631 Forumite
    10,000 Posts Combo Breaker
    Won't I get a divi this year?
  • antrobus
    antrobus Posts: 17,386 Forumite
    worried_jim wrote: »
    Won't I get a divi this year?

    There were complaints six months ago when the divi was halved.

    At the time a Co-Op spokesman "insisted the company was not in financial difficulty following its agreement to buy 632 Lloyds TSB branches in July". An example of a statement that is both 100% accurate and 100% misleading. Perfect PR.:)


    http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9708620/Co-op-divi-cut-in-half.html
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