Co-op looking to sell mortgage processing business
The Times is reporting that the embattled bank is looking for buyers for Western Mortgage Services which has £11bn in loans under administration and 350 employees.
The Co-operative is looking to plug a £1bn-plus black hole in its finances as concerns mount about the Group’s capital position.
Credit agency Moodys recently downgraded the Co-operatives credit rating to junk status and the lender has been taking action to try and address matters.
Last month it stopped lending to new commercial customers and last week it Royal London members voted in favour of its acquisition of the Co-operative’s life insurance and asset management businesses.
The Group is currently looking into whether it can get back bonuses handed out to former senior executives including Neville Richardson who left with £4.6m.
Richardson joined the Co-op in 2009 when it acquired Britannia Building Society and left in 2012 having been the bank’s chief executive.