City advisers take £15m despite no sale of Co-operative Bank

 
Helen Cahill
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Branches Of Co-operative Bank To Be Cut By 15 Percent
The advisers landed a "success fee" even though there was no sale (Source: Getty)

City advisers brought in to secure a buyer for the Co-operative bank are set to receive £15m, even though the bank went to existing investors for a bail-out.

Bank of America Merrill Lynch and UBS will be paid between £15m and £20m, Sky News reported, a payout that will include a controversial “success fee”, even though the advisers did not land a deal.

Read more: Co-op Bank rescue deal Q&A: All of your questions answered

It was reportedly agreed that the fee would only not be paid if the Co-op ended up in a resolution process with the Bank of England.

The news comes after the Co-op agreed a £700m rescue deal with a group of American hedge fund investors, which will bolster the bank’s balance sheet and address the capital requirements of regulators.

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