Regulators decide against hitting Co-op Bank with £120m penalty

The Co-operative Bank has managed to avoid a nine-figure regulator fine over governance and risk management issues that led to its rescue through hedge funds in 2013.

Together with the Prudential Regulation Authority, the Financial Conduct Authority (FCA) decided that levying the £120m penalty against the Manchester-headquartered bank could harm its recovery.

An enforcement probe spanning 18 months uncovered evidence of weak oversight at the bank, which typically would have led to the imposition of a substantial financial penalty.

The Co-op Bank’s chairman, Dennis Holt, said the censures did not reflect the way in which the bank is managed in 2015.

According to a report by Sky News, Mr Holt said: “On behalf of the bank, I would like to apologise again to customers for these past failings and reassure them that the bank is a significantly stronger organisation today under the leadership of the current senior management team.”

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