Senior Co-operative Bank sources have insisted there are no plans to close the business or sell it.
Several options are under consideration to plug the shortfall in capital reserves which could be as high as £1.8bn. One source said that any attempt to sell the Co-op’s retail pharmacy business to raise cash could prove unpopular with members. One option could be to use a new type of share issue in the form of core capital deferred shares to boost capital levels, although it is not thought to be high up on the options list. It is thought a plan to reduce the shortfall will be in place by the end of next month. Co-operative Group finance chief Steve Humes has been forced to resign.
26/05/13 Sunday Times (Business) 3
Sunday Telegraph B1, B8
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Independent on Sunday 10
