Co-op bank

Jean_Newton

I have heard that I should leave the Co-op bank where I have a current account in light of its current problems. Is this true?

dzug1

It's true you have heard it, yes

Whether you should or not is a matter of opinion. Mine is it's too early to decide.

There's another thread called 'Good Banks' with differing opinions offered. At the moment it's close to this one

Anthorn

My position in several related threads is if nothing has changed in the operation of your account there is no need to move.

agrinnall

The only thing I would say is that if you currently have more than £85,000 in the Co-op, then move the excess somewhere else just in case the absolute worst happens. Of course, the same advice is true of every other bank.

anotherbaldrick

I think it might be prudent to assess the financial qualities of the replacement Chairman i.e.. that he might have an inkling of the Banks liquidity.

Archi_Bald

anotherbaldrick wrote: »

I think it might be prudent to assess the financial qualities of the replacement Chairman i.e.. that he might have an inkling of the Banks liquidity.

why only the replacement Chairman? How about the other Execs that are already on board? Is it ok if they remain clueless?

Anthorn

There is a lot of paranoia about the Co-op Bank which is basically the result of scare mongering which doesn't relate to the true facts.

As far as I know the next meeting of institutional bondholders is on December 20 and then if they agree it is likely that the rest of the bondholders will have to vote. What is often missed is that the Co-op Bank is not a mutual and has never been a mutual so there are no members of it to vote.

Until then the bank is likely to operate as normal and if it doesn't the Bank Of England will step in and run it.

Some pundits are saying February 2014 will be the month it is likely to be floated on the stock exchange. But personally I think that is too quick given the work still to be done.

Anthorn

Archi_Bald wrote: »

why only the replacement Chairman? How about the other Execs that are already on board? Is it ok if they remain clueless?

The execs of which board? As far as I know all directors of the Co-operative Group board and it's 3 subsidiary boards including the bank board are all without exception non-executive.

http://www.co-operative.coop/corporate/aboutus/Board/

http://www.co-operative.coop/corporate/aboutus/our-democracy/

anotherbaldrick

Archi_Bald wrote: »

why only the replacement Chairman? How about the other Execs that are already on board? Is it ok if they remain clueless?

Well if he has his buttons in the right places he would be able to assess his fellows and act accordingly

Archi_Bald

Anthorn wrote: »

Until then the bank is likely to operate as normal and if it doesn't the Bank Of England will step in and run it.

Oh really.

Anthorn wrote: »

The execs of which board? As far as I know all directors of the Co-operative Group board and it's 3 subsidiary boards including the bank board are all without exception non-executive.

You have, again, not got your facts straight. There are 2 Executive Directors on the Coop Bank board, according to http://www.co-operative.coop/corporate/aboutus/Board/#Banking

But it doesn't matter whether they are Execs or Non-Execs when it comes to competence. Either they have it or they don't, and evidence suggests none of them did.

ColdIron

Jean_Newton wrote: »

I have heard that I should leave the Co-op bank where I have a current account in light of its current problems. Is this true?

Whether to leave Co-op bank or not very much depends upon why you joined them in the first place. Many people were attracted to them because of their supposed ethical stance

Recent events reveal they are no more ethical than many of their competitors, arguably less so due to their misrepresentation of their affairs, and have not been so for several years. This situation seems unlikely to improve in the short term

If your worry is that of security then they are no more of less safe than any other FCA regulated organisation that is covered by the FSCS

My personal criteria for choosing a bank is - what can they do for me, principally in terms of financial reward? There is nothing that Co-op presently offer makes them look attractive to me

I suggest that you review what it is that you want from a bank and see if Co-op best meets those requirements