Published on 2nd June 2013
The Co-operative is weighing measures designed to bolster the capital levels at its banking subsidiary which may impose losses on the unit’s junior bondholders. The deficit in regulatory capital at its banking division has been estimated by Barclays analysts at between 800m pounds and 1.8bn pounds. That follows on reports, also in the Financial Times, that some councils have begun to cut their exposure to the lender.