Co-op Bank put up for sale - http://www.bbc.co.uk/news/business-38954115

Pleased it will be sold as a whole entity rather than be broken up, as some earlier reports suggested...
Originally posted by Stuart_W

The Co-op Bank has already been 'broken up'; in 2015 it reduced its assets from £10.3 bn to £4.9 bn over the year

...Likely buyers? TSB, Virgin or Nationwide maybe?
Originally posted by Stuart_W

Why would the Nationwide want to own a bank?

The Co-op Bank retains a core business which is expected to return to profits by the end of this year, so somebody might well want it.


I'm not sure it will survive as an entity even if it is sold as one. But it is quite a prize as there is no other way in which a U.K. Bank could acquire 4million customers in a matter of months.
Originally posted by tacpot12

It depends on how much profit you can make out of those 4 million customers. At the moment the Co-op is struggling to do so, which is why it's for sale.

P.S. A non-UK bank might well regard it as an even greater 'prize'.


Why would venture capitalists want to sell it if it's so good?
Originally posted by PeacefulWaters

Because it ain't that good and it needs more capital, and the hedge funds that own the 80% are (presumably) not interested in putting any more money in, and are looking for someone else who will.


Should Co op customers be worried or sit tight? I'm currently waiting for them to pay money out on a ppi claim, will I still get it?
Originally posted by Linda Grace

There is no reason for Co-Op bank customers to be worried. You will still get your PPI pay out.

Welp... think I'm going to TSB then.

I mean their service is pretty good but I'm not sure I'm happy staying with a bank that may or may not exist in the future.
Originally posted by JuicyJesus

If everybody took that attitude, then it would be very likely that the Co-Op bank would indeed cease to exist.

Should Co Op being put up for sale make it easier for Basic account holders to be accepted by other banks? I tried to move last year but due to an old DMP, Santander would not open an account for me and Co Op would not upgrade to a full account, despite me now being very healthy moneywise. I shrugged my shoulders and let it ride but if this makes it any easier, with less chance of rejection, then I might start the ball rolling again. I don't want or need credit just fancy a different account with the wifi symbol. Rather embarrassing when the shop assistant says you can use "tap" and I have to say my card does not have it. Have liked Co Op as a bank other than that and their inflexibility by not upgrading me. Local phonecalll to branch is nice.


Why would venture capitalists want to sell it if it's so good?
Originally posted by PeacefulWaters

Aren't they vulture funds?

They tend to like to dip in, restructure and sell on for a fat profit - not long term growth.

Also, I doubt the circa 20% drop of Sterling to the Dollar went unnoticed. With hard Brexit and Scottish Independence over the horizon, they may just want out.

Who is online

Users browsing this forum: No registered users and 2 guests