UK regulator starts enforcement action against Co-op Bank
Britain's financial regulator has launched an investigation into problems at the Co-operative Bank, including the role played by former senior managers, it said on Monday.
"The Prudential Regulation Authority (PRA) confirms it is undertaking an enforcement investigation in relation to the Co-operative Bank and as part of that investigation will consider the role of former senior managers," it said in a statement.
(Read more: Co-operative Group Chairman Wardle to step down)
Co-op Bank fell under the control of investors including U.S. hedge funds after a 1.5 billion pound ($2.5 billion)capital shortfall was exposed. Its problems were exacerbated when former chairman Paul Flowers was arrested as part of an investigation into the supply of illegal drugs.
(Read more: Former Co-op bank chairman arrested on drugs)