Co-op alternative

We_Are_The_Mods

So, now the slimy hedge fund managers have got their hands on my bank and it's ethical credentials go down the toilet, who can I switch to?

I'm at a bit of a loss as I use my three local post offices for paying in cash and the like, and yet none of the other ethical banks offer this service nor offer me a local branch so I'm stuck between a rock and a hard place.

Also, as a discharged bankrupt (2 years) I'm not sure if this effects my choices.

innovate

Check the basic bank account sticky at the top, and the basic bank account article on the main site.

One alternative for you could be the YBS Cash Transactor.

Not sure what your criteria for 'ethical' accounts are, but may be if you just forget about that aspect, you might find an alternative provider quite quickly.

Anthorn

There are a lot of fairy stories about the Co-operative Bank: The 30% share of the eventually floated shares probably next year will leave The Co-operative Bank holding the highest percentage. So if the bank is to be taken over another shareholder will need to increase their share. But at this stage we don't have the details, all we have is a statement from The Co-operative Group about an offer made to the bond holders group which they say is agreed in principle.

http://www.thisismoney.co.uk/money/markets/article-2470130/Co-op-brink-losing-control-bank-hedge-funds.html#ixzz2iPnlBbjm

As for moving to another ethical bank there is only Triodos that I know of and they only do savings. For a current account there isn't an ethical alternative.

According to The Co-operative Group the ethical stance of the Co-operative Bank will be preserved. But personally I would say that while this may be true at the outset it may be eroded over time if the bank is taken over by an American Hedge Fund. Such a fund is likely to take an aggressive stance on profit-making and the best profits are not gained from ethical investments such as wind-farming.

ColdIron

You might be OK sticking with them

THE CO-OPERATIVE Group wants to write its ethical code into the Co-op Bank’s constitution, and block future owners from scrapping it, City A.M. understands.

http://www.cityam.com/article/1382576640/co-op-force-hedge-funds-keep-its-values

alanq

Some suggestions here:
http://www.theguardian.com/business/2013/oct/23/cooperative-bank-loss-ethical-focus-customers

CLAPTON

In what was was the co-op bank ever ethical?

It behaved just like the other banks and tried to cheats its customers who were only saved by those hedge funds managers.

antrobus

Anthorn wrote: »

There are a lot of fairy stories about the Co-operative Bank: ...

The biggest fairy story being the one that the Co-Op was telling about how they were going to retain control over an effectively bust bank.:)

Anthorn wrote: »

... Such a fund is likely to take an aggressive stance on profit-making and the best profits are not gained from ethical investments such as wind-farming.

You're joking right? Wind farming is virtually a licence to print money. If you wanted to build one, most of those big nasty capitalist banks will happily offer you a deal. Just don't bother asking the Co-Op Bank at the moment.

The Co-operative Group has been forced to halt a £1bn plan to invest in green energy projects, after the bank stopped lending to all new business ventures.
http://www.businessgreen.com/bg/news/2286823/cooperative-forced-to-freeze-renewable-energy-lending

(Of course, once those hedge fund people have bailed them out, no doubt the Co-Op will be back in the business of lending again.:))

JuicyJesus

CLAPTON wrote: »

It behaved just like the other banks and tried to cheats its customers who were only saved by those hedge funds managers.

Apparently it would be far more "ethical" for the Co-op's customers to reclaim up to £85k of their money from the FSCS while everyone else felt the economic shock of a major bank defaulting on its obligations, which would be the situation had the big nasty hedge fund not rescued the Co-operative Bank from its own self-inflicted financial black hole.

Not to mention hedge funds aren't necessarily evil any more than investment funds in general are.

Anthorn

antrobus wrote: »

The biggest fairy story being the one that the Co-Op was telling about how they were going to retain control over an effectively bust bank.:)




You're joking right? Wind farming is virtually a licence to print money. If you wanted to build one, most of those big nasty capitalist banks will happily offer you a deal. Just don't bother asking the Co-Op Bank at the moment.

The Co-operative Group has been forced to halt a £1bn plan to invest in green energy projects, after the bank stopped lending to all new business ventures.
http://www.businessgreen.com/bg/news/2286823/cooperative-forced-to-freeze-renewable-energy-lending

(Of course, once those hedge fund people have bailed them out, no doubt the Co-Op will be back in the business of lending again.:))

Depends on what you're comparing wind-farming with. You're telling me that wind-farming is the most profitable investment? In the light of the new nuclear power station about to be built it seems to me that the government is not depending on wind power in the foreseeable future and could even cut back on subsidies.

Personally, I think there is too much focus on the fairy stories that an American Hedge Fund is going to take over the Co-operative Bank at the end of October and not enough focus on The Co-operative Group: While there is little doubt that the influence of the Group over the Bank is affected, the position of the Group itself is strengthened because they will only be putting into the Bank half of the billion they would have been putting in had their original plan gone ahead!

rb10

Anthorn wrote: »

As for moving to another ethical bank there is only Triodos that I know of and they only do savings. For a current account there isn't an ethical alternative.

I would argue that building societies (Nationwide, N&P, Coventry, Cumberland for current accounts) are ethical.

Their balance sheets are clean: primarily savings and mortgages.

It's a bit hard to comment about TSB until they've published their first standalone set of accounts, but I suspect they could also be deemed ethical.

Milarky

Can I just say that as a former member of Britannia, I voted against it's takeover by Coop bank, not seduced by the 'lure' of food vouchers in exchange for 'our' CDOs. If a few more people had just voted like me then it might have ended quite differently for the Coop..........

:rotfl: