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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.

(Read more: UK Treasury orders independent inquiry into Co-op Bank)

"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.

Simon Dawson | Bloomberg via Getty Images

(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)

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