GO
Loading...

UK regulator starts enforcement action against Co-op Bank

Monday, 6 Jan 2014 | 10:01 AM ET

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)

Featured

Contact Europe News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Europe Video

  • Jan Dunning, CEO of St Petersburg-headquartered hypermarket chain Lenta, says the situation in Ukraine has had no impact on the group, as consumer confidence remains unaffected in Russia.

  • Vincent Deluard, European strategist at Ned Davis Research Group, says the strong euro is a problem for the region's companies, especially for the large exporters.

  • European shares closed higher on Thursday as investors brushed aside concerns regarding Ukraine and focused instead on Wall Street earnings and the latest U.S. jobs data.