Co-op Bank left 'defenceless' by regulator in ill-fated merger

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Britain's City watchdog approved an ill-fated 2009 tie-up with the Britannia despite knowing of 'vulnerabilities', a report finds.

His report found that a"significant level" of potential weaknesses was discovered when the FSA carried out stress tests ahead of the Co-op's Britannia deal.Former Co-op Bank chairman Paul Flowers was last year banned from the financial services industry

"It mainly approved the merger to contain the risk of a major loss of confidence on the UK financial system," the report added. Mr Zelmer said if the FSA had challenged the Co-op over its own due diligence assessment ahead of the Britannia deal, that"might have been helpful" to the lender which was lacking in expertise and suffering"broader governance weaknesses" at the time

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Co-op bank merger was deliberately staged to destroy the largest independent bank

Yes, G. Brown's govt was 'up the creek without a paddle' 🙄

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