London Daily

Focus on the big picture.
Tuesday, Oct 27, 2026

The Co-op Bank isn’t worthy of its name

The Co-op Bank isn’t worthy of its name

We’ve heard a lot this week about infrastructure spending, and how much more will be needed if the UK is to achieve the ‘Green Industrial Revolution’ that the Prime Minister seems to have sketched on the back of a pizza box.

We’ve also heard that the Chancellor is looking at ways to squeeze billions for Treasury coffers out of the private pension sector. What we haven’t heard so far is a plan to join those two pieces of the economic jigsaw - by encouraging pension managers to become committed investors in infrastructure projects.

There are signs of a small shift in that direction among local authority pension funds, but at a recent World Pensions Council event, one speaker described overall long-term investment of this kind by UK institutions as ‘minuscule’.

Meanwhile, league tables of top global infrastructure investors include many Canadian and Australian pension funds as well as sovereign wealth from the Middle East and China - on which we can’t continue to rely. But our own pensions industry traditionally shuns complex project financing, preferring the liquidity of government bonds - though may prefer them a little less if Rishi Sunak cuts the returns on index-linked gilts by switching them to a lower measure of inflation.

If instead he can find ways to incentivise a useful portion of our £6 trillion of private pension wealth towards backing hydrogen power, e-vehicle plug-in networks, small nuclear reactors for every city and an ocean of wind turbines, Downing Street’s green daydream might have a better chance of meeting reality.

Never-ending troubles


The Co-operative Bank has been in trouble for so long that some observers are surprised it still exists as an independent business. It has had six chief executives in nine years and never looked stable since a £1.5 billion ‘black hole’ was found in its balance sheet in 2013 - when its chairman, the ‘crystal Methodist’ minister Paul Flowers, resigned after an exposé involving drugs and rent boys.

Soon after that, a group of hedge funds mounted a rescue that diluted the parent Co-operative Group first to a 30 per cent minority and eventually to zero - which you might think good reason for the bank to stop calling itself ‘Co-operative’ and using a logotype that clearly associates it with the Co-op’s corner shops and funeral parlours.

That former link is still a subliminal part of the bank’s ‘ethical’ image, which is really about not lending to arms manufacturers and oil companies that were never likely to ask for its help in the first place. But I’d guess many customers and passers-by still believe the bank’s branches to be part of the member-owned Co-op movement, which has shown its commitment to community support throughout the pandemic - while the bank continued racking up losses and searching for a survival path.

It will move even further from its origins if it falls to a takeover approach from a New York private equity firm called Cerberus Capital, the ‘vulture fund’ that bought Northern Rock’s £13 billion mortgage book in 2013 - and stands accused by the chairman of the parliamentary committee on Fair Business Banking, Kevin Hollinrake MP, of ‘substandard treatment’ of borrowers, not to mention being ‘a parasitic fund that has happily fed on the misery of our citizens’. Surely the Bank of England should block Cerberus and step in - as it probably should have done in 2013 - to steer Co-op Bank’s three million customers into the care of a stronger high-street lender, even if it has to be one that’s less concerned with virtue-signalling?

Hard-nosed operator


I’m sorry to see a ‘closing down sale’ banner on the branch of Edinburgh Woollen Mill that I walk past every day, because I’m sorry for staff who are losing jobs and I hate the way lockdown is accelerating high-street decline. But I can’t summon much sympathy for EWM’s owner Philip Day, who led a buyout of the cut-price clothing retailer from Scottish owners in 2002 and built an empire around it by acquiring struggling chains and brands such as Peacocks, Jaeger and Austin Reed.

Accused earlier this year of owing Bangladeshi suppliers £27 million in unpaid bills (which EWM strongly denies) and recently by the British Property Federation of ‘manipulating and abusing’ insolvency rules in its treatment of landlords, EWM is - or was - as hard-nosed as any operator in its sector. And like Sir Philip Green on his Monaco yacht, I don’t suppose the Dubai-based billionaire Day is about to suffer a serious dent in his lifestyle.

Banter and lust


I’d be lying if I said I remember much about Capital City, a drama series set in an investment bank that was first broadcast by ITV in 1989, back when the hi-tech trading floors that had recently arrived in London offered anthropological novelty for the viewing public.

But I read that most of its characters came across as likeable and driven by moral conscience - even voting to strike rather than handle a bond issue for a company that was dumping toxic waste in Africa - so it can’t have been very true to life.

Much more accurate, I’d say, is Industry, a glossy new BBC-HBO production about young graduates finding their feet in a fictional firm called Pierpoint & Co.

Written by former mergers-and-acquisitions banker Mickey Down and trader Konrad Kay, it captures the daily cocktail of stress, banter, tribal skirmishing and unconcealed lust that I recall from the real Capital City era - though my generation didn’t do so many drugs or get each other’s kit off so often as Industry’s kids do.

By keeping the business detail brief but largely incomprehensible, it also portrays the inward-facing nullity of so much of what the anthropologist turned FT writer Gillian Tett memorably called the ‘silo’ life of high finance. Will goodness, truth and social purpose triumph by episode 8, just before Christmas? For once I rather hope not.

Newsletter

Related Articles

0:00
0:00
Close
Education or Indoctrination? The Growing Debate Over Religious Participation in British Schools
Germany's Vanishing Shopfronts: The Silent Collapse of the Businesses That Built Its Cities
Transport for London Unveils Expanded Zero-Emission Bus Fleet to Meet Capital Air Quality Targets
Higher Education Institutions Face Deepening Financial Strain Amid Declining International Student Enrolment
Automotive Industry Leaders Criticize Government Tax Policies and Urge Action on Retail Consumer Confidence
Environment Agency Issues Flood Alerts Across Scottish and English Waterways Following Heavy Rainfall
Independent Audit Highlights Persistent Security Vulnerabilities Across Legacy Government Digital Portals
Northern Ireland Political Leaders Clash Over Westminster Funding Allocations Ahead of Autumn Budget
Ethnic Minorities in England Face Significant Disparities in Routine Breast Cancer Diagnosis Rates
National Police Chiefs Report Alarming Surge in Domestic Abuse Cases Fuelled by Expanding Illegal Cocaine Market
Government Announces Two Hundred and Twenty Million Pound Pothole Funding Boost for Local Highway Authorities
China Issues Formal Warning Over Potential United Kingdom Restrictions on Chinese Electric Vehicles
British Defence Ministers Sign E5 Pact to Enhance European Military Capabilities and Industrial Cooperation Within NATO
United Kingdom Business Activity Expands at Fastest Pace in Eight Months According to S&P Global Flash Survey
Chancellor John Healey Prepares Major Devolution Package and Bank Profit Surcharge Ahead of Upcoming Autumn Budget
National Health Service Consultants in England Announce Two-Day Strike Action Scheduled for November
Major Clean-Up Under Way Across Britain Following Destruction Caused by Consecutive Storms Austen and Boelo
KEY TRENDS TO WATCH
Declassified Intelligence Files Reveal British Security Services Monitored National Health Service Founder
British Government Launches Sweeping Regulatory Crackdown on High-Risk Cosmetic Procedures
Scottish National Party Demands Ban on Using Scottish Revenues to Fund English Nuclear Energy Projects
Mayor of London Initiates Landmark Pedestrianisation of Oxford Street to Revitalise Global Retail Hub
British Judges Granted Expanded Legal Powers to Punish Convicted Killers Who Refuse to Attend Sentencing
United Kingdom Poised to Miss Reduced International Aid Spending Targets Ahead of Fiscal Review
Surging Cocaine Consumption Drives Record Drug Fatalities and Rising Crime Rates Across Britain
Department of Health and Social Care Announces One Hundred and Forty Million Pound Boost for Urgent Care
British Services Sector Records Strongest Growth in Eight Months Despite Broader Economic Uncertainty
United Kingdom Retail Sales Suffer Unexpected Decline as Consumer Confidence Plummets
Greater Manchester Mayor Andy Burnham Urges National Debate on Restoring European Union Free Movement
Deep Cabinet Divisions Emerge Over Controversial Approval of North Sea Fossil Fuel Projects
United Kingdom Government Urges Citizens to Stockpile Essential Supplies in National Resilience Pivot
Storm Boelo Kills Two People and Cuts Power to Tens of Thousands Across Great Britain
Critical Software Flaw Forces Dozens of United Kingdom Government Services Offline Amid Mass Security Warnings
UK Consumer Confidence Tumbles Amid Rising Energy Costs and Global Commodity Price Pressures
North Sea Transition Authority Approves Production from Jackdaw Gas Field to Bolster Domestic Energy Security
Storm Boelo Leaves Tens of Thousands of Households Without Power Across Scotland and Northern Ireland
UK Government Launches National Be Ready Campaign Urging Households to Prepare Three Days of Emergency Supplies
Department for Environment Food and Rural Affairs Implements Stricter Water Quality Regulations for British Rivers
Welsh Government Launches Major Renewable Energy Initiative to Expand Offshore Wind Capacity Along the Coast
Northern Ireland Executive Reaches Final Agreement on Comprehensive Regional Infrastructure Modernization Plan
Office for National Statistics Reports Moderate Increase in British Retail Sales Driven by Autumn Discounts
Scottish First Minister Announces Emergency Housing Strategy to Tackle Severe Homelessness Across Urban Centers
Automotive Industry Leaders in the United Kingdom Urge Government Support for Electric Vehicle Manufacturing Transition
United Kingdom and European Union Initiate High-Level Negotiations on Post-Brexit Defense and Security Pact
National Health Service England Introduces Sweeping Digital Reforms to Reduce Hospital Waiting Lists Nationwide
Chancellor of the Exchequer Outlines Emergency Fiscal Measures to Address Local Government Funding Crises Across England
Bank of England Governor Warns of Persistent Inflation Pressures Impacting Interest Rate Decisions in the United Kingdom
UK Conservative Party Suspends Former Electoral Candidate Following Undercover Investigation
Actors and Writers Condemn British Anti Terror Legislation Targeting Activist Groups and Free Speech
Central Bank and Treasury Monitor Inflation Risks as International Monetary Fund Upgrades United Kingdom Growth Forecast
×