Co-op bank for sale

PeacefulWaters

notafan wrote: »

Can't see Lloyds wanting it. Their 3 year plan has been aiming to cut 400 branches by the end of 2017 which i believe they're on track with. When it had to give up project verde i can imagine they were quite selective about what/who they let go. Whilst the expense and hassle of splitting and disposing of these to TSB must have been a pain, I am fairly sure they'll have been rubbing their hands with glee at the prospect of offloading branches they didn't want anyway to TSB - which is why TSB has had to close and/or relocate multiple. Lloyds will have certainly made the best of that awkward situation!

The regulatory process for the disposal of TSB had a basic set of rules that ensured TSB ended up with better quality branches and customers than Lloyds was left with.

Lloyds were not able to cherry pick.

King_Of_Fools

If TSB buy it then it will be quite a turnaround as Co-op was originally planning to buy TSB before it went bust.

Also the MSE article says that 100% of shares are for sale, does that include the 20% held by the Co-op group?
If the 20% stake is also sold I would predict that the bank would change its name in the longer term.

notafan

King_Of_Fools wrote: »

If TSB buy it then it will be quite a turnaround as Co-op was originally planning to buy TSB before it went bust.

Also the MSE article says that 100% of shares are for sale, does that include the 20% held by the Co-op group?
If the 20% stake is also sold I would predict that the bank would change its name in the longer term.

Not sure TSB will want it either. Aside from them cutting their branches they're gunna have their hands full as they are moving off LLoyds systems this year and onto Sabadell's. Would think they also wouldn't want the extra hassle of planning to migrate another few million accounts off another bunch of systems. The new app is due Q1 this year and the rest of the platform revealed by the end of the year.

If Lloyds was looking at 750 million (original co-op bank offer) for 5 million accounts and aprox 650 decent accounts & branches, whilst also guaranteeing future PPI claims then co-op cant be looking too attractive at all. Especially given that back then branches and coverage was looking more attractive.

1.4 million accounts (according to the guardian today), 100 ish branches, liability for PPI claims and miss selling, toxic loans, legacy HQ and offices if your already a bank, duplication of all functions along with an ethical customer base who is likely to be more picky about where they bank, probably far more then say your average HSBC customer etc makes this quite a big risk.

Not to mention W&G is potentially up for grabs, and potentially CYBG if its not a buyer itself and these could also drive the cost down.

We've also yet to see how disruptive the new fintech banks will be (atom, starling, monzo, tandem). If your an existing bank you might well want to be saving your pennies in case you need to purchase one of these guys.

Its a tough one. 4 million barley profitable accounts and the new owner will almost certainly have all the negative publicity about making thousands of people redundant in order to realise "synergies".

If you were nationwide right now you'd be really going after these customers, this is a golden opportunity for them - not to buy this basket case but to position itself as the ethical champion.

Zanderman

68James wrote: »

Help. I have banked with Co-op since I went through a bankruptcy in 2011. I was thinking about switching as I was discharged in June 2012 but this is making think more so now. Any ideas on who to switch to and whether I could go to a mainstream account now as I have an ISA with savings with them too?

There's no need to do anything. The bank is not closing, it's merely being sold. As a bank.

ColdIron

Heng_Leng wrote: »

Aren't they vulture funds?

Well those evil hedge fund vultures saved it when it was looking over the edge of the abyss along with the jobs of its employees

notafan

I wonder if Dominic Chappell has a spare £1 ? :rotfl:

Anthorn

PeacefulWaters wrote: »

Nationwide or Coventry: Why would they want to commit their members' money to recapitalising a bank?

Triodos: I'm not overly familiar with them, but why would they want to? Haven't they stopped servicing uk personal customers?

Co-op: I'm sure they'd love to get it back, but there's little chance of them having the financial clout to do it.

Lloyds Banking Group: You mean an organisation forced to spin off TSB because of excessive market share?

My point about financial backing flew over your head.

Triodos have been making noises for quite some time about making retail personal bank accounts available. They most closely match Co-op Bank in their ethos.

Co-op Group were the previous owner of Co-op Bank. As I said if we look at how the hedge funds make a profit from a takeover they sell the company back to the original owner which is Co-op Group.

Lloyds Banking Group is possibly more a long shot but the acquisition of MBNA shows that they are expanding.

But it's all speculation and if we read the posts in this thread no-one is likely to want it. If that's true then perhaps there are European banks sitting on the horizon.

But my money is still on LBG.

System

TSB, Clydesdale or Santander are all possibles to swallow pretty much whole. Nationwide (and others such as Virgin) are only players if the bank is getting broken up. Only if all other options fail will the larger banks get a look in.

Obviously, there will also be interplay the Williams & Glyn sale - the winner in this will probably have their hands full and not want Co-op.

System

ColdIron wrote: »

Well those evil hedge fund vultures saved it when it was looking over the edge of the abyss along with the jobs of its employees

It's what they are known as - it wasn't a value judgement! :rotfl:

Co-op should have just defaulted on the bonds of the rich OAPs anyway.
Might have scared the old dears away from Brexit

System

With their market share, they'll be at the back of the queue!

Anthorn wrote: »

But my money is still on LBG.