https://theconversation.com/w
https://theconversation.com/what-went-wrong-for-the-co-op-bank-14308This article seems to be pointing the blame at over-ambition and expansion:
Quote:
But in recent years the bank became increasingly ambitious and expansionary.This was most vividly demonstrated when it took over the Britannia Building Society in 2009. At that time, Britannia was the second biggest building society in the UK. The business plan was to build a mutual bank that could start to take on the plc banks like HSBC and Barclays. This strategy found favour with many commentators and politicians who, in the wake of the 2007/08 financial crisis, were keen to have more competition in the financial services market and to see ethical banking succeed.
Interestingly, Britannia was also a mutual organisation (so it slightly surprising that it's loan book was not transparent, unless they didn't know how based it was neither). Upton's conclusion is telling:
Quote:
It tried to expand too quickly, and it took over an organisation without properly considering the value of the purchase. These are mistakes any business can make.
The mistakes that can cause untold misery for thousands of people.