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| Version 1 | Version 2 |
|---|---|
| Co-op Bank escapes regulatory fine | Co-op Bank escapes regulatory fine |
| (about 3 hours later) | |
| The Co-operative Bank has escaped a fine from regulators investigating the "failings" throughout 2009-13 that led to its bailout. | The Co-operative Bank has escaped a fine from regulators investigating the "failings" throughout 2009-13 that led to its bailout. |
| The Financial Conduct Authority (FCA) said the Co-op had misled investors - which would normally mean a fine. | The Financial Conduct Authority (FCA) said the Co-op had misled investors - which would normally mean a fine. |
| Georgina Philippou, the FCA's acting director of enforcement said it was a serious matter. | Georgina Philippou, the FCA's acting director of enforcement said it was a serious matter. |
| But she said exceptional circumstances meant public censure was the appropriate and proportionate response. | But she said exceptional circumstances meant public censure was the appropriate and proportionate response. |
| Ms Philippou said: "It is vitally important that Co-op Bank's capital resources are directed towards improving its resilience. | Ms Philippou said: "It is vitally important that Co-op Bank's capital resources are directed towards improving its resilience. |
| "Co-op Bank's statements about capital in the 2012 financial statements were misleading." | "Co-op Bank's statements about capital in the 2012 financial statements were misleading." |
| Co-op said these were "legacy issues" that had occurred under the previous management. | Co-op said these were "legacy issues" that had occurred under the previous management. |
| Its chairman, Dennis Holt, apologised and said the bank was "a significantly stronger organisation today under the leadership of the current senior management team". | Its chairman, Dennis Holt, apologised and said the bank was "a significantly stronger organisation today under the leadership of the current senior management team". |
| "They relate to historical events and legacy issues and were not decisions made by the current senior management team." | "They relate to historical events and legacy issues and were not decisions made by the current senior management team." |
| Mr Holt said the bank had made "material progress" in addressing these shortcomings and had overhauled processes, systems and practices, significantly strengthened its board and rebuilt the bank's capital position." | Mr Holt said the bank had made "material progress" in addressing these shortcomings and had overhauled processes, systems and practices, significantly strengthened its board and rebuilt the bank's capital position." |
| Analysis: Kamal Ahmed, BBC business editor | |
| My sources at the FCA have admitted that this is the first time a firm of the Co-op's size has escaped a fine given the findings against it. | |
| The main reason, according to both the Bank of England and the FCA, is that the Co-op still has a lot of work to do building its capital position, the key marker of the financial health of a bank. | |
| Remember, the Co-op was the only bank to fail the Bank of England's stress tests last year. | |
| The regulators appear to have made the judgement that because the bank is still making losses, a fine would have been counter-productive. | |
| Read Kamal's blog in full |