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TheCountOfNowhere

Co-Op Bank And Britannia Merger 'should Never Had Happened'

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http://www.bbc.co.uk/news/business-27217198

"The Co-operative Bank's merger with the Britannia building society in 2009 should never have happened, a major review of the organisation has said.

Sir Christopher Kelly's report blames the deal for the bank's near collapse last year."

"Near collapse"...why weren't people queuing for their money ?


Anyway, if they merger shouldn't have happened are they saying the Britannia should have been allowed to go bust ?

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ALL M&A activity should be treated with huge suspicion, on the basis that things normally go wrong. (Ok, it tends to go badly for customers, employees below a certain grade and small/long term shareholders. The Right People tend to do well.)

Mergers within a banking sector which already has issues with TBTF banks should go through a 1-step vetting process, which always says 'no'.

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Maybe Co-op shouldnt have been Labours little piggy bank filled with unqualified Labour crony capitalists then it may have done a little better.

They certainly...co-operated, to the point they co-uld not operate

Edited by TheCountOfNowhere

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Maybe Co-op shouldnt have been Labours little piggy bank filled with unqualified Labour crony capitalists then it may have done a little better.

What, like RBS?

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Co-op bank - For sale

US hedge fund owners look at options to bolster funds including selling off the troubled bank. Amid persistent speculation over its long-term future, the bank said its board had decided to look for buyers, and also at other ways of bolstering its financial position. Guardian

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On 30/04/2014 at 8:39 AM, Corruption said:

Maybe Co-op shouldnt have been Labours little piggy bank filled with unqualified Labour crony capitalists then it may have done a little better.

This.

You should have seen the COOP board, overseeing the group.

Shocking - Nurses, scaffolder,  druggy Methodist.

 

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23 minutes ago, Si1 said:

Has it practically gone bust Again?

No quite.

Private Equity rushedin as the price was distressed.

And found these reason it was distressed - its bust.

Any failing bank or financial org these days is like a rocket propelled falling knife. Leverage is a killer.

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12 minutes ago, StainlessSteelCat said:

Nice that the announcement came after a weekend of "planned" downtime for Coop online banking.  Looks like it might be time to start looking for a new bank.  Any ethical banks out there? 

Ethical banks lol!

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14 minutes ago, StainlessSteelCat said:

Nice that the announcement came after a weekend of "planned" downtime for Coop online banking.  Looks like it might be time to start looking for a new bank.  Any ethical banks out there? 

Nice, good point!

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I saw an advert for Santander mortgages that suggested they had moved their mortgage application process online! Still I imagine anyone buying coop would get branches, staff, etc. I am unsure with falling net interest margins and massive competition whether they will get a sale. If this was a few years ago I would have said Nationwide would absorb take them over! Not now though!

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6 hours ago, StainlessSteelCat said:

Nice that the announcement came after a weekend of "planned" downtime for Coop online banking.  Looks like it might be time to start looking for a new bank.  Any ethical banks out there? 

Since the coop lends to landlords, there'll be the same number of ethical banks whether they go bust or not. 

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6 hours ago, spyguy said:

No quite.

Private Equity rushedin as the price was distressed.

And found these reason it was distressed - its bust.

Any failing bank or financial org these days is like a rocket propelled falling knife. Leverage is a killer.

Good job that Mark Carney's being vigilant and applying central bank policies to persuade them to lend more.

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Quote

 

Co-op Bank and Britannia merger 'should never have happened'
30 April 2014

"It's easy to blame individuals... but what I've tried to show is that this was a systematic failure"

 

Sure thing...

I would like to see someone rip some shirts off too (in a claim on all assets, leaving them with nothing, type of way) - my hands are too pretty for it -  and leave the boom-time money-never-runs out over-paid executive greedsters with nothing.     Now it's soppy 'collective responsibility' projecting.

First school outing I went on was to the first co-op store in Rochdale, turned into a museum.  Humble society days.

The monstrosity of the co-op boom-times HQs does my head in, even if it's on some lease/rent deal over long term to German finance, regardless if co-op group proper sold off the bank to those US financiers.

Quote

22 Oct 2013

Mr Marks oversaw several deals at the top, including the £1.6bn takover of Somerfield in 2009, and the ill-fated merger with Britannia building society in the same year.


Mr Marks, who retired in May, also famously boasted that he had "taken the shirt off" Lloyds chief executive Antonio Horta-Osorio with the Co-op Bank’s deal to take over 632 of the bank's branches.

The Co-op later blamed the continued economic downturn and tougher regulatory environment imposed on banks for the collapse of the deal.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10396570/Peter-Marks-profile-of-a-Co-op-lifer.html

 

 

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