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Co-Op bank downgraded to junk
http://www.x404.co.uk/forum/viewtopic.php?f=19&t=18916		 Page 1 of 1
Author:  koli [ Sat May 11, 2013 7:54 am ]
Post subject:  Co-Op bank downgraded to junk
Quote:
The company’s 275 million pounds ($423 million) of 9.25 percent subordinated notes due April 2021 fell 27 pence to 74.9 pence on the pound, according to Bloomberg prices. The have been quoted above par since July. The lender was cut six steps by Moody’s Investors Service to Ba3, which cited the potential for losses on real estate loans and low levels of provisions for future impairments.

http://www.bloomberg.com/news/2013-05-1 ... ation.html

I thought that they did things the right way, the ethical way. They were meant to save the high street banking, weren't they? They were not supposed to be like other mean big bad banks. Looks like it was just a clever marketing all along...

Their CEO has resigned as well:
http://www.telegraph.co.uk/finance/news ... fears.html
Author:  Spreadie [ Sat May 11, 2013 8:25 am ]
Post subject:  Re: Co-Op bank downgraded to junk
koli wrote:
http://www.bloomberg.com/news/2013-05-10/co-op-bank-s-subordinated-bonds-tumble-amid-bail-in-speculation.html

OK, I know it's supposed to be written in English because I recognise some of the words. Other than that... :oops:
Author:  l3v1ck [ Sat May 11, 2013 11:19 am ]
Post subject:  Re: Co-Op bank downgraded to junk
Banks make profits for share holders. If you want ethics you have to look towards building societies IMO.
Author:  JJW009 [ Sat May 11, 2013 12:07 pm ]
Post subject:  Re: Co-Op bank downgraded to junk
I read this on the Telegraph yesterday, and it unsettled me rather. Guess who I bank with..?
Author:  jonbwfc [ Sat May 11, 2013 12:43 pm ]
Post subject:  Re: Co-Op bank downgraded to junk
l3v1ck wrote:
Banks make profits for share holders. If you want ethics you have to look towards building societies IMO.

The co-op doesn't have shareholders in the strict sense, it has members which is different. How closely the co-op bank is actually related to the rest of the organisation I couldn't say. To be fair, the co-op *as an organisation* does have a set of rules it's supposed to adhere to in it's corporate 'charter'. If the banking part has failed to do that the rest of the board may well follow the CEO out the door.

If you're a 'household customer' with the bank your cash is legally protected (unless you've got an awful lot of it) but if they do crash having played fast & loose it could fatally damage the entire brand, which very much sells itself as being a more responsible and ethical option.

FWIW JJ, I'm a Smile customer so I'm in the same boat as you, whatever boat that may turn out to be.

Jon
Author:  Amnesia10 [ Sat May 11, 2013 5:42 pm ]
Post subject:  Co-Op bank downgraded to junk
l3v1ck wrote:
Banks make profits for share holders. If you want ethics you have to look towards building societies IMO.

Actually the Co-op bank is probably more ethical than the rest. The current problems that they are facing are down to having lots of right offs because of commercial loans as a result of the takeover of Britannia building society.


Sent from my iPad using Tapatalk.
Author:  koli [ Fri May 24, 2013 9:30 pm ]
Post subject:  Re: Co-Op bank downgraded to junk
Quote:
In a statement, the Co-op said the decision to freeze new business lending was part of "an extensive review of the Co-operative Bank, its capital and lending position and its commercial strategy", which it said was "ongoing".

I would start getting worried and would make sure have a contingency plan in place!
Co-operative Bank halts new business lending
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