Co-op Bank About to Collapse?
Discussion
Rumours the Co-op Bank is in serious financial trouble (again) and may be about to collapse if it cannot find a buyer. Very sad.
http://www.thisismoney.co.uk/money/news/article-37...
http://www.telegraph.co.uk/business/2017/02/04/wal...
http://www.thisismoney.co.uk/money/news/article-37...
http://www.telegraph.co.uk/business/2017/02/04/wal...
Noblebenn said:
What would be the affect on commercial banking accounts and their funds should the worse happen?
If the worst were to happen... then the government has underwritten Cash in bank accounts will only be guaranteed up to a limit of £85,000 from January 31, 2017.if any bank goes bust across the EU.
http://www.moneysavingexpert.com/savings/safe-savi...
(link is only uk regulated banks)
Noblebenn said:
Great, just wanted to make sure commercial accounts were also included. Thanks
There is... get off ass... go and withdraw monies and go sort out bank account with HSBC/etc... Commercial is grey area and Co-Op would not be top of my list for business banking.
http://www.knowyourmoney.co.uk/business-current-ac...
anonymous said:
[redacted]
Metro's not bad, as long as you only deal in major currencies. I'm just debating closing my Co-op account and going with a different bank instead. My other business account is with Metro, but it can't handle SEK transactions for some reason so I've kept my Co-op account open. Not for much longer though. I'm fed up with them.Du1point8 said:
This is what ethical trading and other leftie crap get you in a big bad world of real life.
It hasn't been that ethical though. It was run by a whoring and buggering coke fiend until the press told the public, its been hoovering up land at grossly inflated prices to supposedly stop farmers from producing crops they don't like and has been bank door financing political parties. And it's also monumentally s
t at being a bank. 
Du1point8 said:
This is what ethical trading and other leftie crap get you in a big bad world of real life.
Socialists running a bank, it beggars belief really. Who in their right mind would have money in there after the shenanigans of the last few years? Virtue signalling can go too far.The trouble is that the CoOp worked wonderfully for 120 years as a lefty lender. It was often the only moral lender in many U.K. towns. The branches used to sit there underpinning and bettering whole communities. And like the regional mutuals, the CoOp for over a hundred years showed that there is nothing wrong with lefty lending. In fact their balance sheet was probably always much stronger than many banks as they were far more prudent in who and how they lent to and operate with a fraction of the avarice of a traditional bank.
The problem came in the 90s, as it did for many solid and historic British institutions. The old guard were moved out to pave the way for the new generation. When you look at the FTSE constituents at the time you see all the classic old boys retiring or being ousted and the new generation taking over, you also see boardroom remuneration rocketing as the new generation began massively increasing their reward structures etc. Now the same behaviour was happening at the ethical lenders and many of the long term established charities (think RSPB etc) but the structure of these entities prevented managers from awarding themselves massive pay rises so they attracted a different type of person from the new generation. They attracted the political activists, the extremists. Not your traditional Methodist, Northerner type who focussed on doing community business that directly helped the poorest but with desire and potential to better themselves through work. No, political activists who looked upon institutions such as the CoOp as tools to carry their political views nationally and even internationally. The CoOp became a political vehicle to lobby and fight for political change and the customers changed from being people the CoOp existed to help and serve to being treated as fuel to be consumed to drive their political engine further forward.
By the late 90s the CoOp as we all knew it and respected it was dead. It had just become a political machine abusing its clients and wealth to lobby for a remit it never, ever had. And it became the banker for other political activists, lending them money on a political basis not a commercial one. The CoOp today is a badly run, corrupt and unethical institution that exploits its customers and bullies people for political gain. It should be dismantled, converted to a mutual and return to servicing its customer base for the benefit of its customer base.
The problem came in the 90s, as it did for many solid and historic British institutions. The old guard were moved out to pave the way for the new generation. When you look at the FTSE constituents at the time you see all the classic old boys retiring or being ousted and the new generation taking over, you also see boardroom remuneration rocketing as the new generation began massively increasing their reward structures etc. Now the same behaviour was happening at the ethical lenders and many of the long term established charities (think RSPB etc) but the structure of these entities prevented managers from awarding themselves massive pay rises so they attracted a different type of person from the new generation. They attracted the political activists, the extremists. Not your traditional Methodist, Northerner type who focussed on doing community business that directly helped the poorest but with desire and potential to better themselves through work. No, political activists who looked upon institutions such as the CoOp as tools to carry their political views nationally and even internationally. The CoOp became a political vehicle to lobby and fight for political change and the customers changed from being people the CoOp existed to help and serve to being treated as fuel to be consumed to drive their political engine further forward.
By the late 90s the CoOp as we all knew it and respected it was dead. It had just become a political machine abusing its clients and wealth to lobby for a remit it never, ever had. And it became the banker for other political activists, lending them money on a political basis not a commercial one. The CoOp today is a badly run, corrupt and unethical institution that exploits its customers and bullies people for political gain. It should be dismantled, converted to a mutual and return to servicing its customer base for the benefit of its customer base.
I think there's more of a market context to it though, which is that running a spread lending institution like bank in a zero-interest rate climate is just very difficult to do profitably, given the zero floor on the majority of your liabilities. When you combine that with expensive and inflexible legacy IT systems you have a recipe for zero or negative earnings and erosion of the capital base.
DonkeyApple said:
The trouble is that the CoOp worked wonderfully for 120 years as a lefty lender. It was often the only moral lender in many U.K. towns. The branches used to sit there underpinning and bettering whole communities. And like the regional mutuals, the CoOp for over a hundred years showed that there is nothing wrong with lefty lending. In fact their balance sheet was probably always much stronger than many banks as they were far more prudent in who and how they lent to and operate with a fraction of the avarice of a traditional bank.
The problem came in the 90s, as it did for many solid and historic British institutions. The old guard were moved out to pave the way for the new generation. When you look at the FTSE constituents at the time you see all the classic old boys retiring or being ousted and the new generation taking over, you also see boardroom remuneration rocketing as the new generation began massively increasing their reward structures etc. Now the same behaviour was happening at the ethical lenders and many of the long term established charities (think RSPB etc) but the structure of these entities prevented managers from awarding themselves massive pay rises so they attracted a different type of person from the new generation. They attracted the political activists, the extremists. Not your traditional Methodist, Northerner type who focussed on doing community business that directly helped the poorest but with desire and potential to better themselves through work. No, political activists who looked upon institutions such as the CoOp as tools to carry their political views nationally and even internationally. The CoOp became a political vehicle to lobby and fight for political change and the customers changed from being people the CoOp existed to help and serve to being treated as fuel to be consumed to drive their political engine further forward.
By the late 90s the CoOp as we all knew it and respected it was dead. It had just become a political machine abusing its clients and wealth to lobby for a remit it never, ever had. And it became the banker for other political activists, lending them money on a political basis not a commercial one. The CoOp today is a badly run, corrupt and unethical institution that exploits its customers and bullies people for political gain. It should be dismantled, converted to a mutual and return to servicing its customer base for the benefit of its customer base.
Great post, even though the last para is painful it is true. Tens of thousands of people clung on hoping for an upturn, including me, not to be.The problem came in the 90s, as it did for many solid and historic British institutions. The old guard were moved out to pave the way for the new generation. When you look at the FTSE constituents at the time you see all the classic old boys retiring or being ousted and the new generation taking over, you also see boardroom remuneration rocketing as the new generation began massively increasing their reward structures etc. Now the same behaviour was happening at the ethical lenders and many of the long term established charities (think RSPB etc) but the structure of these entities prevented managers from awarding themselves massive pay rises so they attracted a different type of person from the new generation. They attracted the political activists, the extremists. Not your traditional Methodist, Northerner type who focussed on doing community business that directly helped the poorest but with desire and potential to better themselves through work. No, political activists who looked upon institutions such as the CoOp as tools to carry their political views nationally and even internationally. The CoOp became a political vehicle to lobby and fight for political change and the customers changed from being people the CoOp existed to help and serve to being treated as fuel to be consumed to drive their political engine further forward.
By the late 90s the CoOp as we all knew it and respected it was dead. It had just become a political machine abusing its clients and wealth to lobby for a remit it never, ever had. And it became the banker for other political activists, lending them money on a political basis not a commercial one. The CoOp today is a badly run, corrupt and unethical institution that exploits its customers and bullies people for political gain. It should be dismantled, converted to a mutual and return to servicing its customer base for the benefit of its customer base.
Yipper said:
Yes, Co-op has gone the same way as RBS, BoS, B&B and others. A small northern bank that tried desperately to play with the big boys in London and lost.
I dont think you understand RBS as you are saying it in the same sentence as B&B, Co-op and BoS.Do you realise the size that RBS was before the f
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