Troubled Co-operative Bank appoints ex-Alliance & Leicester boss as chairman

Struggling group, the Co-operative Bank has appointed the former CEO of Alliance & Leicester, Richard Pym, as its new chairman.

Speaking to City A.M., Pym said that he is "not able to speculate on any issues for the future", but tired to be upbeat on the bank's prospects, saying that it has a big role in the sector and that its customers love it.

The bank’s debt has plunged in price after a six-notch downgrade to a junk rating by credit ratings agency Moody’s, while the departure of its boss Barry Tootell also caused alarm.

It is hoping to plug its capital shortfall by selling off its life and general insurance businesses, as well as running down bad debts at the Britannia Building Society which it acquired in 2009.

The bank has also stopped lending to new business customers and is selling its mortgage processing unit in Plymouth, which was also acquired in the Britannia merger.