London Daily

Focus on the big picture.
Thursday, Nov 05, 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
United Kingdom and Caribbean Nations Agree to Establish Formal Diplomatic Dialogue Following Reparations Discussions
Cambridge University Appoints Senior Barrister to Lead Independent Review into Death of Academic Jason Arday
Historic Hastings Castle and Kent Dickens Chalet Added to National Heritage at Risk Register Amid Deterioration Concerns
Incoming British Ambassador to Japan Calls for Deepened Bilateral Cooperation on Artificial Intelligence and Semiconductors
Milburn Review Urges Employment Revolution to Unlock Workforce Opportunities for Young Disabled Britons
British Healthcare Worker Evacuated from Democratic Republic of Congo to United Kingdom Following Ebola Exposure
United Nations Refugee Agency Criticises Government Proposal for Thirty-Year Earned Settlement Pathways for Asylum Seekers
Parliamentary Inquiry Warns United Kingdom Remains Exposed to Chinese Critical Mineral Dependencies
Bank of England Prepares Interest Rate Decision as Inflation Pressures Prompt Expectation of Four Percent Benchmark
Department for Business and Trade Overhauls Protection Standards for Digital Animation and Moving Image Files
Intellectual Property Office Introduces Thirty-Month Grace Period for International Product Launches
Intellectual Property Office Targets Anti-Competitive Filings With New Powers to Verify Novelty Before Registration
Creative Industries Minister Ian Murray Praises Regulatory Reforms to Safeguard Small Businesses and Micro-Enterprises
Government Unveils Major Design Framework Overhaul to Protect British Creators and Boost Economy
Global Asset Management Reports Surge in British Dividend Payouts Driven by Strong Financial and Mining Sectors
HM Treasury Confirms Strongest Group of Seven Growth Figures as Fiscal Consolidation Plans Progress
Department for Energy Security and Net Zero Approves Construction of New North Sea Offshore Wind Hub
Northern Ireland Executive Finalizes Public Sector Pay Agreements Following Months of Inter-Agency Negotiations
Welsh First Minister Eluned Morgan Secures Cross-Party Support for Regional Clean Energy Infrastructure Bill
Competition and Markets Authority Launches Formal Investigation Into Dominant Artificial Intelligence Cloud Partnerships
United Kingdom Foreign Secretary David Lammy Concludes High-Level Diplomatic Mission to Washington and Ottawa
Scottish Government Announces Emergency Housing Investment Package to Address Escalating Urban Homelessness
Chancellor Rachel Reeves Finalizes Corporate Tax Adjustments Ahead of Upcoming Business Investment Summit
National Health Service England Unveils Emergency Winter Resilience Plan to Combat Projected A&E Overcrowding
Bank of England Monetary Policy Committee Votes to Hold Base Interest Rate Steady at Four Point Seven5 Per Cent
UK Gross Domestic Product Expands by Zero Point Four Per Cent in Third Quarter Driven by Resilient Services Growth
Northern Ireland Executive Agrees on Multi-Year Public Sector Pay Restructuring Framework at Stormont
Department for Transport Confirms Acceleration of Electric Vehicle Charging Infrastructure Rollout Along Strategic Motorways
Welsh Government Announces Emergency Funding Package to Support Agricultural Sector Facing Severe Weather Impacts
High Court Rules in Favor of Environmental Coalition Over Government Carbon Reduction Plan Deficiencies
Office for National Statistics Reports Stable Retail Sales Growth Supported by Strong Digital Commerce Volumes
Scottish First Minister John Swinney Secures Cross-Party Support for Renewable Energy Export Expansion
National Health Service Digital Reports Major Breakthrough in Reducing Elective Waiting Lists Across England
Chancellor Rachel Reeves Outlines Infrastructure Spending Reforms to Boost Regional Economic Growth Across Northern England
Bank of England Holds Baseline Interest Rate at Five Percent Amid Persistent Core Inflation Pressures
House of Lords Advances Representation of the People Bill to Modernize Electoral Law Ahead of General Election
Financial Markets and Private Equity Assess Tax and Corporate Realignment Following Recent Chancellor Budget Adjustments
Justice Committee Warns Legal Aid Is a Service in Managed Decline Due to Inadequate Government Funding Responses
Royal Navy Intercepts Russian Intelligence Vessel and Warships Across Intensive North Sea Operations
Business and Trade Committee Slams Government Policy on China as Fragmented and Lacking Strategic Direction
Home Secretary Shabana Mahmood Softens Immigration Plans Following Intensive Cabinet Backlash Over Settlement Timelines
Automotive Industry Data Reveals Continued Acceleration in Battery Electric Vehicle Registrations Across British Dealerships
High Court of England and Wales Rules on Landmark Legal Challenge Regarding Local Government Housing Mandates
Department for Energy Security and Net Zero Approves Expanded Offshore Wind Infrastructure Along Scottish Coastline
Competition and Markets Authority Launches Broad Investigation Into Artificial Intelligence Infrastructure and Cloud Partnerships
United Kingdom and European Union Launch High-Level Preparations for Bilateral Defense and Security Summit in Brussels
National Health Service England Unveils Emergency Workforce Reforms to Alleviate Winter Accident and Emergency Pressures
Chancellor Rachel Reeves Finalizes Autumn Budget Adjustments to Meet Fiscal Rules and Fund Public Services
Bank of England Prepares for Interest Rate Decision Amid Rising Bond Yields and Inflationary Pressures
House of Lords Begins Detailed Legislative Scrutiny of Representation of the People Bill and Cyber Security Laws
×