Co-op strike a deal with regulators

The Co-operative Group today unveiled a deal with regulators that will see the mutual plug a £1.5 billion shortfall in the balance sheet of its banking arm.

Group chief executive Euan Sutherland told the BBC Radio 4 Today programme that the bank was ``asking our bondholders to contribute'' and said the long-term plan was to now focus on retail customers.

He added: “I think we are really strengthening the group right now and we have put in, in a very short time, a very strong management team and we have got a very clear plan to drive a very successful future for this bank going forward.

“Clearly there are lessons to learn and clearly there will be a time to look back and do that but, to be honest, in the last six weeks, where I have been involved with the Co-operative group, we have focused on driving a very solid future for this bank.”

“In effect this is the best solution for all concerned,” he added.

“It’s a very equitable solution and we believe that this will provide security, safety, stability for our customers and the bank going forward.”