Menu
17/06/2013
Bonds For Shares Plan Unveiled To Save Co-op Bank
A rescue plan to fill a £1.5 billion hole in the Co-operative banks balance sheet has been unveiled.
A major part of the plan is to offer bond holders the chance to buy shares in the bank – a move to generate capital called a "bail in".
The plan will also see the bank listed on the stock market, and means both investors and the group contribute to the bank's recapitalisation.
Euan Sutherland told BBC Radio 4's Today programme that, "This is the best solution for all concerned."
It is understood that under the plan, bond holders will lose out in the short term, but no help will be needed from taxpayers.
If bond holders exchange their bonds for shares they will be secure a "significant minority stake" in the bank, allowing them to "share in the upside of the transformation of the bank".
(MH/CD)
A major part of the plan is to offer bond holders the chance to buy shares in the bank – a move to generate capital called a "bail in".
The plan will also see the bank listed on the stock market, and means both investors and the group contribute to the bank's recapitalisation.
Euan Sutherland told BBC Radio 4's Today programme that, "This is the best solution for all concerned."
It is understood that under the plan, bond holders will lose out in the short term, but no help will be needed from taxpayers.
If bond holders exchange their bonds for shares they will be secure a "significant minority stake" in the bank, allowing them to "share in the upside of the transformation of the bank".
(MH/CD)
Related UK National News Stories
Click here for the latest headlines.
05 May 2011
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.
07 November 2013
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England's Monetary Policy Committee has voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375bn.
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England's Monetary Policy Committee has voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375bn.
08 October 2008
Interest Rate Cut Follows £50b 'Rescue Plan'
The Bank of England has sensationally slashed interest rates to 4.5%, on the same day Gordon Brown unveiled a radical £50b 'rescue plan' for UK banks. The interest rate move came earlier than expected, with a 0.5% cut being implemented by the central bank, as well as six others.
Interest Rate Cut Follows £50b 'Rescue Plan'
The Bank of England has sensationally slashed interest rates to 4.5%, on the same day Gordon Brown unveiled a radical £50b 'rescue plan' for UK banks. The interest rate move came earlier than expected, with a 0.5% cut being implemented by the central bank, as well as six others.
08 April 2013
UK's Household Wealth 'Surpasses £7tr'
According to new research, the UK's total household wealth has surpassed the £7tr mark for the first time. Researchers for Lloyds TSB Private Banking found that net worth, which includes the value of residential buildings and financial assets held by households – minus outstanding debts – was estimated at £7.05tr by the end of 2012.
UK's Household Wealth 'Surpasses £7tr'
According to new research, the UK's total household wealth has surpassed the £7tr mark for the first time. Researchers for Lloyds TSB Private Banking found that net worth, which includes the value of residential buildings and financial assets held by households – minus outstanding debts – was estimated at £7.05tr by the end of 2012.
05 September 2003
Police seize $6bn in suspect bonds and drugs
It has emerged that police have seized suspect US bonds worth £4.4 billion ($6 billion) as part of a major investigation into a Colombian drug trafficking cartel. The bonds, intercepted during raids organised by the national Crime Squad in London and southern England, are currently being examined to see if they are authentic.
Police seize $6bn in suspect bonds and drugs
It has emerged that police have seized suspect US bonds worth £4.4 billion ($6 billion) as part of a major investigation into a Colombian drug trafficking cartel. The bonds, intercepted during raids organised by the national Crime Squad in London and southern England, are currently being examined to see if they are authentic.
-
Northern Ireland WeatherThis Evening and Tonight:Showers, scattered in the evening, will clear by midnight leaving the night dry with clear spells. Perhaps a touch of ground frost. Cloud will spread east towards morning. Minimum temperature 2 °C.
