Following allegations made against their former chairman the Co-op bank are to undertake a ‘root and branch’ review of the bank. This review will not include the banks legal services arm.
The review follows an expose by the Mail on Sunday of chairman Paul Flowers, where video evidence appeared to show him buying illegal drugs.
Flowers had been chairman of the bank since April 2010 and had faced previous controversy after appearing before the Treasury Select committee earlier this month. He proved unable to state the bank’s assets, estimating the figure at £3bn when in fact it was £47bn.
A statement from The Co-operative Group said given the serious and wide-ranging nature of the allegations that they would be undertaking a review to assess whether there was inappropriate behaviour at The Co-operative Group or The Co-operative Bank.
They said they would take action as necessary.
How do you feel about the review – is it far-reaching enough? Do you think the on-going controversy surrounding the Co-operative will have an impact on their success in the legal services market?
