Friday, 29 November 2013

Co-op Bank renews its pledge

The Co-operative Bank took out full page ads in national newspapers to reassure investors of its ethical stance prior to the vote on the plan to deal with its debt.

Early bird thresholds have been met by the deadline, so enhanced consideration will be paid.  Early results show that retail bondholders and preference shareholders back the Co-operative Bank £1.5 billion Recapitalisation Plan.  Mark Taber has done a great job to achieve this.

The PR strategy probably helped the vote.  However, I think retail investors were persuaded by the offer rather than the ethics.  The Co-op Bank has admitted that it's losing retail customers.  I imagine they will have a long way to go to rebuild trust, but this is a good start.  Euan Sutherland contines to impress.

As I said in a previous post, the only way is ethics.

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