The Co-operative Group has launched an independent review into how its banking business ended up with a capital shortfall of £1.5bn.
The review will start in September and will be led by the King’s Fund and Responsible Gambling Strategy Board chairman Sir Christopher Kelly.
The society said the review had been commissioned by the new executive teams at the group and the bank, together with the boards of both organisations, on behalf of the group’s members.
It will look at the decision to merge The Co-operative Bank with the Britannia Building Society in 2009 and the proposed acquisition of the Verde assets of Lloyds Banking Group.
“We have developed and announced a comprehensive solution to meet the capital requirements of our Bank, bringing stability to a business that is loved by its customers and members,” said group CEO Euan Sutherland.
“As we move forward with implementing the detail of this plan, it is important to learn from the past. To ensure that we can do that, we are today announcing the launch of an independent review which will take a detailed and forensic look at all the relevant events and issues.”
Sir Christopher added: “The management teams and boards at The Co-op Group and The Co-op Bank are determined to find out what went wrong and are giving me and my team all the support and facilities I need to run a detailed and thorough, fully independent review. I look forward to helping these important businesses and the wider co-operative movement learn the lessons to take into the future.”
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