Co-Op bank - should I leave?

BC1973

With all the grief that they're facing and now the announcement of a £2.5billion loss, should I be worried about my accounts? Should I bail? I have several with the Co-Op & Smile.

nilrem_2

Your savings are safe up to £85,000. I have just reinvested a fixed rate deal with them for 2 years plus I have 2 Smile accounts, ai have no plans to move out of Co-op.

The bank will not be allowed to fail in the event of a serious problem it would be taken over.

Compared to the amounts lost by RBS and Lloyd's the Co-op losses are minor.

ColdIron

Your cash is safe but you may end up being a Barlays customer

http://blogs.spectator.co.uk/coffeehouse/2014/04/last-rites-for-the-co-op-bank-as-group-announces-record-losses/

dr_adidas01

nilrem wrote: »

Your savings are safe up to £85,000. I have just reinvested a fixed rate deal with them for 2 years plus I have 2 Smile accounts, ai have no plans to move out of Co-op.

The bank will not be allowed to fail in the event of a serious problem it would be taken over.

Compared to the amounts lost by RBS and Lloyd's the Co-op losses are minor.

Are you sure it would be taken over? How do you know it will be taken over, do you have some sort of inside knowledge on the matter?

It could very well be allowed to fail and go under, who knows what will happen.

Just because you believe that it won't be allowed to fail doesn't mean in reality that, that will be the case.

thenudeone

Large banks / Institutions have already failed in the UK several times in recent years (B&B, Northern Rock, RBS etc.) but the authorities have always taken steps to ensure that a handover or bailout happens in a relatively orderly fashion and never reaches the stage where people's bank cards suddenly stop working, for example, because the bank has failed.

I don't think there is much risk of them allowing it in this case either.

innovate

George Osborn has already once told them he will not bail them out. That's why they needed to find another deal, and they have found one.

Should they fail again, I hope they will again be no taxpayer funded rescue. Not v likely that the Hedge Funds will actually let them go to the wall though.

antrobus

BC1973 wrote: »

With all the grief that they're facing and now the announcement of a £2.5billion loss, should I be worried about my accounts? Should I bail? I have several with the Co-Op & Smile.

It's the Co-Op Group that has lost £2.5 billion. The Co-Op Bank 'only' lost £1.3 billion. And it clawed back a lot of that from its debt for equity swap.

The Co-Op Group now only has a 30% stake in the Co-Op Bank, and possibly even less in the future.

System

There would just be a BoE arranged marriage.

I don't think Barclays or one of the big banks would be allowed.

It could be merged with someone like TSB or RBS's new bank (Williams and Glyn) in exchange for an equity share.

innovate wrote: »

George Osborn has already once told them he will not bail them out. That's why they needed to find another deal, and they have found one.

Should they fail again, I hope they will again be no taxpayer funded rescue. Not v likely that the Hedge Funds will actually let them go to the wall though.

WestonDave

You have to wonder what is going on with their management - the Legal Services arm lost £9m on turnover of £33m - you have to be spectacularly incompetent to do that especially as most of their work is probate fed in from their funeral business!

Thrugelmir

If you bank with the Co Op on ethical grounds then now is the time to move to another mutual.

nilrem_2

innovate wrote: »

George Osborn has already once told them he will not bail them out. That's why they needed to find another deal, and they have found one.

Just because George Osborne states they he won't bail them out does not mean anything, this government have made more U-turns in a short space of time than any other in history!