Update on the Co-op Bank

Co-operative Bank There has been a further update to the market this morning from the Co-op where they have detailed the outcome of the negotiations between the Group and bondholders over the future of the Co-operative bank. Shareholding As expected the Co-operative Group will be diluted to a 30% shareholding. Ethical Constitution The good news is that as expected the bank will be drawing up an “ethical constitution”.  How far reaching this will be, it is too early to say. Branch closures The bank will be closing approx. 15% of its branches by the end of 2014, as well as fully integrating Britannia into its business. The group announced that it would try and consolidate some of its business banking units in order to minimise disruption on its High-street banking customers. Members Campaign In the last few days, a campaign website and two petitions have been started.  The main campaign is located at http://saveourbank.coop/ It asks that customers don't switch from the Co-op Bank yet, but to sign up to a new campaign to make sure the Co-operative Bank sticks to its principles and – eventually – comes back into full Co-operative ownership where it belongs. Organised by Shaun Fensom - formerly of the Phone Coop - the campaign has the backing of Ethical Consumer Magazine.  http://www.ethicalconsumer.org/  By Helen Tandy SGHTBlog/061113

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