Co-operative Bank

Fines levied by the regulator against the financial services industry soared by almost 50% this year, as the tougher stance of the new Financial Conduct Authority (FCA) left its mark.

FIVE THINGS

Aurelius Capital, the largest hedge fund investor in the Co-op Bank, has sold down almost its entire stake to rival Perry Capital.

Paul Flowers, the former chairman of the Co-op Bank filmed apparently paying for drugs, has been arrested in connection with a "drugs supply investigation", according to reports.

The City regulator has begun an investigation into the role of former senior directors at the Co-operative Bank.

The home of former chairman of Co-op Bank, Paul Flowers, has been searched for drugs by West Yorkshire Police.

One of the regulators who rubber-stamped the appointment of disgraced former Co-op Bank chairman Paul Flowers later landed a job with the troubled lender, according to reports.

The Co-operative Group was scrambling late on Monday to convince the 4.6 million customers of its banking arm that its ethical stance could survive aggressive US hedge funds taking a stake in the troubled bank.

Co-op Bank has secured a rescue deal with creditors over the weekend which will see branch numbers reduced and staff redundancies, according to reports.

The former boss of the Co-op was lambasted by MPs for having ‘selective amnesia' after he claimed its stricken bank is an innocent victim of the financial crash.