The Co-operative Bank (Co-op Bank) has ceased plans for its sale as it hopes a new rescue plan from its hedge fund owners will save the firm.
Co-op Bank put itself on the market in February after it was unable to reach a strong enough footing to satisfy Bank of England regulations. It also said it needed £750m to fill a capital shortfall.
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But in June, it said it was in “advanced discussions” with a group of existing investors on recapitalisation.
Now the bank says the plan has been “substantially agreed”.
The Co-op Bank, in which the Co-operative Group still has a 20% stake, was rescued from the brink of collapse by a group of hedge funds in 2013.
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By GlobalDataEarlier this year, it reported its fifth annual loss in a row, although the £477m deficit for 2016 was an improvement on the £610m loss recorded in 2015.
The Co-op Bank has four million customers and is well known for its ethical standpoint. The lender said that the rescue plan would enable it to continue as a stand-alone entity and “safeguard the Bank’s values and ethics”.
