Will we get a windfall……Coventry Building Society acquisition of Co-operative bank.

idontknowif

Apologies if this is in the incorrect category….

Would anyone happen to know whether as an existing Co-operative bank customer, I would be due any windfall upon the completion of the potential acquisition by Coventry Building Society?

Hattie627

I don't think so. The Co-op Bank is not a mutual organisation owned by "members" (ie by its savers and borrowers). It is owned by its shareholders.

idontknowif

Thanks Hattie627
Was hopeful, but never mind…ever the optimist!

WillPS

As above - even when it was owned by The Co-op Group (which is a different sort of mutual, a consumer co-operative), it was still a bank, not a mutual in and of itself, and they could in theory have sold the bank off then sat on or reinvested the profits without releasing anything for their members.

In the event, they had to effectively pay hedge funds to offload the risk of it, which actually caused them to make a huge loss and stop paying dividends.