#1171

OldBoyReturns
Keymaster

Latest prices –

I emailed the heads of both the PRA and FCA last night about the situation as follows. They have both acknowledged receipt already so lets see.

Dear Mr Woods & Mr Bailey

As you will recall I played a key and high profile role in the successful restructuring of Co-op Bank in 2013 which avoided resolution and cost the taxpayer. I am now receiving a lot of calls from journalists following the Sunday Times article of 29 January article which states –

Carney mulls plans to put Co-op bank out of misery

The Bank of England is considering a further intervention into the Co-operative Bank that could lead to the lender being wound up before the end of the year.

The Co-op Bank ‘Update of previous guidance’ announcement on 26 January omitted to update on how the slippage impacted on its previously agreed plans with the PRA for meeting its ICG and MREL issuance obligations. If there is an impact then this information is clearly market sensitive as evidenced by the market reaction yesterday to the article. In which case the PRA should be telling Co-op Bank and asking them to update the market and NOT briefing newspapers off the record. I know the reporters concerned and their rules of engagement and they would not have reported what they did without a good source, the comments will have been ‘off the record’ and whoever made them will not be named elsewhere in the article. I consider it market abuse on the part of the regulators and also reckless behaviour which threatens the stability of a financial institution in breach of the regulator’s statutory objectives.

I therefore suggest you urgently make, or require Co-op Bank to make, a public statement to clarify the position and avoid damaging media speculation which could lead to an avoidable failure of the institution. I look forward to hearing from you.

Regards

Mark Taber