The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) have launched enforcement investigations into failures at the Co-operative Bank which led to it receiving a rescue package of £1.5bn from its parent company.
The move could result in substantial financial penalties being imposed on the bank and its former directors if they are found to have acted recklessly while at the helm. The regulatory probes dovetail into a host of other ongoing inquiries into the bank, such as the Treasury Select Committee's, which will hear evidence from FCA director of supervision Clive Adamson about the institution on Tuesday. The previously-mutually-owned bank suffered from the result of its merger with the Britannia Building Society in 2009, which largely created the bank's £1.5bn blackhole from toxic assets su...
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