Regulators censure Co-op Bank for hiding capital position

In a joint investigation with the PRA, the FCA found the Co-op Bank "fell short of its responsibility to be open with its regulators", one of the principles that regulated firms must abide by. The PRA found the bank failed to manage its affairs responsibly, with adequate risk management, breaking Principle Three of the PRA's code of conduct. In particular, Co-op Bank had a three lines of defence risk management model that was flawed in design and operation, the FCA said. Co-op Bank's failings would normally merit a substantial fine, the FCA said. However, the FCA said both it ...