Co-Op Rescue plan launched

John_Pierpoint

It might be something to do with the Libel laws and the secret injunctions.

It looks like there might be be more solids hitting the air-conditioning, as it was the Bank of Ireland (and Cyprus) that previously came up with the idea of robbing the bond holders before liquidating the company.

BoI to rethink swap for Bristol & West 'pibs' - The Independent

https://www.independent.co.uk › News › Business › Business News‎
Jun 29, 2011 – The Bank of Ireland (BoI) has cancelled plans that could have seen savers holding £75m in bonds issued by the old Bristol & West building ...

Bank of Ireland 13.375% Subordinated Bonds Campaign - Fixed ...

www.fixedincomeinvestments.org.uk/.../bank-of-ireland-13-375-subordi...‎
That this House notes the recent offer of the Bank of Ireland to purchase the erstwhile Bristol and West Permanent Interest Bearing Shares; thanks the Bank for ...

UK pensioners in legal revolt over Bank of Ireland restructuring ...

https://www.telegraph.co.uk › Finance › News by Sector › Banks and Finance‎
Jun 13, 2011 – One part of that restructuring relates to permanent interest bearing shares (PIBS) issued by Bank of Ireland subsidiary Bristol & West worth ...

Generali

A poster called OldBoyReturns on The Fool organized the BoI action group and is getting together an action group on the Coop PiBs.

http://boards.fool.co.uk/co-op-action-group-12831832.aspx?sort=whole

As he says in his post, either he organized the group or left the country for 4 months! Any holders of PiBs in Co-Op lurking (or contributing) should get in touch via the above link. You will get some great advice and be able (although not required) to contribute to the fighting fund.

Expect a good outcome if one is possible!

Masomnia

I almost bought some of the prefs, but my gut said no. He seems to know his stuff from what I've read on there, so if anyone can do it I'm sure it's him.

Generali

Masomnia wrote: »

I almost bought some of the prefs, but my gut said no. He seems to know his stuff from what I've read on there, so if anyone can do it I'm sure it's him.

If you can navigate the utterly appalling site design then it's worth having a look at how he (they) took on the Irish Government over BoI. He's awesome!

pqrdef

Kennyboy66 wrote: »

Why people think that preference or PIBS with a 13% coupon were totally risk free is beyond comprehension.

Fine, so long as the ordinary shares are wiped out first.

Forced swapping of pibs for equities in the same company is nonsense.

Masomnia

pqrdef wrote: »

Fine, so long as the ordinary shares are wiped out first.

Forced swapping of pibs for equities in the same company is nonsense.

Since the only holder of ordinary shares is the Coop group I can't see that happening.

antrobus

Masomnia wrote: »

Since the only holder of ordinary shares is the Coop group I can't see that happening.

But that's exactly the Co-Ops Cunning Plan.

southcoastsounds

"FORMER Co-operative Bank boss Neville Richardson has resigned from the boards of Marks & Spencer Bank and estate agent Countrywide, amid mounting criticism of his record.Richardson ran Britannia Building Society until its 2009 merger with the Co-op, after which he took charge of the enlarged Co-op Bank."


Phew! I was getting worried about M&S Bank with him in charge.


See here for further info.

antrobus

southcoastsounds wrote: »

...Phew! I was getting worried about M&S Bank with him in charge...

There was no cause for concern. Richardson was only ever a non-executive director of M&S Bank, and M&S Bank are part of HSBC who have deep pockets.

pqrdef

TruckerT wrote: »

So I repeat my earlier question - 'despite all the recent angst and scrutiny surrounding the banking industry, why was it such a surprise that the Co-op bank was in some kind of trouble?'

The attitude of the parent group was the imponderable. The Co-op Bank did well out of the 2007/8 crisis, lots of new customers, lots of smugness. The Group took it as a vindication of their difference, and told everybody. They were on a roll.

They were still keen on banking when they took over Britannia, and still when they went for the TSB deal. And TSB was affordable because Lloyds were all but paying them to take it away.

Pulling out of TSB was the first real indication that the Group had gone cold on finance. Moody's downgrade announcement said the bank would need external support, by which they meant, an injection of capital from the parent. No surprise there. But the unstated implication of the downgrade was that the TSB pull-out had raised a question mark over whether that support would be forthcoming, or whether the Group would head for the cheapest exit instead.

A lot of commentators seem to have misread the signs. They believed the propaganda and thought the Group still wanted to own an ethical bank, but was just a bit strapped for cash.

Co-op Bank has nowhere to go now though. Its systems badly need an upgrade. Its loan book needs continual refinancing, but its credibility is shot. It's started slimming itself down - it's sold off a chunk of the ex-Britannia loan book and is disentangling its larger business customers. It's mentioned cost savings - read branch closures and job losses. Next year it'll join TSB and Williams & Glyns as a small retail bank looking for a buyer. If Branson and JC Flowers are still interested, they'll think it's Christmas.