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Co-op bank for sale
Comments
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If an "orderly failure" happens, would customers temporarily lose access to their funds? I don't want to close my accounts and contribute to their downfall, but I am on a low income and my cashflow is very tight.0
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Well, you know, we rescued banks way back in 2008 by printing billions of dollars and then those banks proceeded to use the free cash to pay themselves fat bonuses. But the good old Co-op gets no help at all and is left to fade into obscurity. Something wrong there somewhere.
Perhaps they shouldn't have hidden their bad debts for four years longer than the others, while paying their chief executive a seven figure salary and large bonuses in addition.0 -
Well, you know, we rescued banks way back in 2008 by printing billions of dollars ...
The UK is not capable of "printing billions of dollars". We use pounds...and then those banks proceeded to use the free cash to pay themselves fat bonuses. But the good old Co-op gets no help at all and is left to fade into obscurity. Something wrong there somewhere.
Yup. What's wrong is that you don't understand what "quantitative easing" entails. And that's just for starters.:)0 -
King_Of_Fools wrote: »Hopes fade for Co-op Bank turnaround plan
www.bbc.com/news/business-39356672
The Bank of England has placed the Co-op Bank under "intensive supervision" as survival options for the ethically-based lender dwindle.
The BBC understands contingency plans to ensure the "orderly failure" of the 150 year old bank are well advanced.
The issue with the Co-op Bank is this; it's up for sale, if no one makes an offer it will go to Resolution.
http://www.bankofengland.co.uk/financialstability/Pages/role/risk_reduction/srr/conducting.aspx
I suspect that there are banks who would prefer to get the bits they want from Resolution, rather than take on the whole sorry mess themselves.0 -
The UK is not capable of "printing billions of dollars". We use pounds.
Oh right no-one printed any dollars. And I thought it was owned by Americans. Zimbabwe Dollars?Yup. What's wrong is that you don't understand what "quantitative easing" entails. And that's just for starters.:)
What I understand is that the banks were given money on the understanding that the banks would help small business but the banks kept the money and paid themselves fat bonuses. Then my employer went down because he couldn't get help from the banks and the reason he went down was because the businesses he got his contracts from went down because they couldn't get help from the banks. It's called "snowballing". Then the banks were given yet more money to help small business but they still didn't help and paid themselves yet more bonuses. At the time it was said the banks were rewarding themselves for failure and the banks replied saying that their talented executives had to be paid well or they would leave. The government and everyone else replied, "Eh" and then gave up and left the banks to do their own thing.
The banks went down due to bad investments on property and mortgages which they kept secret and tried to cover up.
Oh yeah that's quantitative easing.0 -
If the Co-op Bank goes to Bank of England for "Resolution" does anyone know of any other bank that has undergone this process and if so, what was the impact on customers or is it simply "business as usual".0
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Then my employer went down because he couldn't get help from the banks and the reason he went down was because the businesses he got his contracts from went down because they couldn't get help from the banks.
A business failing is not the fault of the banks. Borrowing money may be the answer but it's not the solution. That's something more fundamental like (a) being profitable and more importantly (b) generating cash. As the old saying goes. Turnover is vanity, profit is sanity but cash is always king.0 -
If the Co-op Bank goes to Bank of England for "Resolution" does anyone know of any other bank that has undergone this process and if so, what was the impact on customers or is it simply "business as usual".
Dunfermline Building Society
http://www.bankofengland.co.uk/financialstability/Pages/role/risk_reduction/srr/resolutions/dunfermline.aspx
Ok, it's not a bank. The Resolution scheme was introduced by the Banking Act 2009 - the government came to the conclusion that there really should be some kind of process to deal with failing financial institutions. I don't think that there have been any banks that have failed since 2009. The Co-op might be the first?0 -
Oh right no-one printed any dollars. And I thought it was owned by Americans. Zimbabwe Dollars?..
The UK doesn't print dollars. The Americans aren't going to save the Co-op bank either...What I understand is that the banks were given money on the understanding that the banks would help small business but the banks kept the money and paid themselves fat bonuses. Then my employer went down because he couldn't get help from the banks and the reason he went down was because the businesses he got his contracts from went down because they couldn't get help from the banks. It's called "snowballing". Then the banks were given yet more money to help small business but they still didn't help and paid themselves yet more bonuses. At the time it was said the banks were rewarding themselves for failure and the banks replied saying that their talented executives had to be paid well or they would leave. The government and everyone else replied, "Eh" and then gave up and left the banks to do their own thing.
The banks went down due to bad investments on property and mortgages which they kept secret and tried to cover up.
Oh yeah that's quantitative easing.
As I said before, you don't understand. It's just as well that has no relevance to the plight of the Co-op Bank.0 -
The UK doesn't print dollars. The Americans aren't going to save the Co-op bank either.
As I said before, you don't understand. It's just as well that has no relevance to the plight of the Co-op Bank.
It is relevant because the Co-op Bank has not done anything that's any different to what the banks did in 2007/8. I was here at the time. I lost my job because my employer went down because the banks didn't do what they were supposed to do and instead kept the money for themselves.
The Co-op should be helped just like those banks were helped. That's fair. But it's not going to happen.0
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