The Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) have confirmed that they're undertaking an enforcement investigation in relation to the Co-operative Bank. The PRA says it will consider the role of former senior managers, whilst the FCA says that the decisions and events leading up to June 2013 will be looked at.
Co-op Bank came under the control of investors after a £1.5bn capital hole in its finances was uncovered.
Problems for the lender were then compounded when its former chairman Paul Flowers was arrested following drug allegations. The former minister was subsequently dubbed the Crystal Methodist.
Regarding the independent review into the bank that was confirmed by George Osborne in November, the FCA added in its statement:
The independent review announced by the Chancellor will commence once it is clear that it will not prejudice any actions that the regulators may take. This sequencing is necessary to ensure that the outcomes of the enforcement work are not prejudiced and follows the approach taken for both the RBS and HBOS reports.