Economy

Co-operative Bank says capital plans to change

LONDON (AP) — Troubled lender Co-operative Bank says previous plans to boost its capital by 1.5 billion pounds ($2.3 billion) will likely change as it holds talks with various creditor groups.

The announcement Monday comes as the bank seeks to balance the expectations of various parties while maintaining the customer-owned lender's "ethical focus." Co-operative Group, Britain's biggest mutual business, announced a rescue plan for the bank this year that would bolster its balance sheet and meet new capital requirements by converting some bonds into stock. The shares will be listed on the London Stock Exchange.

However, the bank said that the plan continues to evolve and that it cannot offer more detail now. The bank's difficulties arise from poor commercial loans taken on in 2009, when it merged with Britannia building society.

Related Headlines

  • BoE Financial Stability Report

    Britain scales back loan program

    The Bank of England has scaled back a loan program meant to spur economic recovery, amid fears that cheap mortgages could inflate a housing bubble. The Fund for Lending ... 

  • Lloyds lifts bonus pool, confirms dividend return

    Taxpayer-backed Lloyds has backed an increase in its bonus pool and confirmed its plan to pay a dividend for the first time in years. The British lender said Thursday it is ... 

  • What's a bitcoin? A look at the digital currency

    Early Tuesday, the world's most established exchange for bitcoin disappeared from the Internet, sending the price of the virtual currency tumbling and prompting fears that the ... 

  • Financial group warns on Scottish independence

    British financial group Standard Life said Thursday it is drawing contingency plans to move some of its operations out of Scotland in the event it votes for independence — a ... 

Find the best rates

Find your future job here