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.
15 October 2015
New BoE And Financial Services Bill Published
The government has published a new Bank of England and Financial Services Bill, aimed at strengthen the governance and accountability of the Bank, update resolution planning and crisis management arrangements between the Bank and Treasury, and extend the principle of personal responsibility to all sectors of the financial services industry.
New BoE And Financial Services Bill Published
The government has published a new Bank of England and Financial Services Bill, aimed at strengthen the governance and accountability of the Bank, update resolution planning and crisis management arrangements between the Bank and Treasury, and extend the principle of personal responsibility to all sectors of the financial services industry.
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.
-
Northern Ireland WeatherToday:It will be cloudy again throughout the day. Mainly dry in the morning, but patchy drizzle in places, becoming more widespread and persistent in the afternoon. Freshening southwesterly winds. Maximum temperature 12 °C.Tonight:Cloudy with a spell of heavy rain pushing south through late evening and the early hours, followed by some clear spells. Minimum temperature 6 °C.
