Co-op Bank chief resigns after Moody's downgrade

(Source: Reuters)

Co-op Bank chief executive Barry Tootell has resigned after ratings agency Moody's has downgraded the bank, warning that it may require "external support". Last month a deal to purchase over 600 UK branches of Lloyds fell through.

If The Co-op had taken over the branches, it would have created Britain’s seventh largest bank.

“Against the backdrop of the current economic environment, the worsened outlook for economic growth and the increasing regulatory requirements on the financial services sector in general, the Verde transaction would not currently deliver a suitable return for our members within a reasonable timeframe and with an acceptable level of risk,” said Co-op chief executive Peter Marks.

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