The Co-operative Bank is trying to reassure its customers that it will not need a multimillion-pound taxpayer bailout following the departure of their Chief Executive and Moody’s downgrades of their debt status.
Several weeks ago we reported on the banks decision to pull out of a deal to buy 632 branches from Lloyds Banking Group.
The decision by the ratings agency Moody’s to drop the bank’s credit rating followed this and the bank posting £600m losses in March.
Moody downgraded the bank by six notches and warned that the bank might need "external support" if it could not sort out its financial position.
The Co-operative’s admission that it needs to raise capital comes amid an industry-wide review of banking strength by City regulators.
Moody’s questioned whether the bank’s proposed disposals and scaling back of its businesses would be enough to bolster the bank’s closely-watched capital ratio, which at 8.8% is low relative to its peers.
They said the Co-operative was unlikely to be able to generate enough extra capital from profits.
What will this mean for conveyancing? As the Co-operative has not yet entered the conveyancing market the question is — when will they? With the issues they are currently facing are they likely to any time soon?
