Anorak | What the Co Op bank tells us about the financial crash

What the Co Op bank tells us about the financial crash

by | 2nd, September 2013

PA-17071558 SO it looks like the Co Op Banks has only just managed to avoid going tits up :

The Co-operative Group has plunged to a £559m first-half loss as bad debts in its banking arm wiped out profits from its supermarkets.

The group said there would be no quick fixes as it embarked on a four-year turnaround plan, after reporting pre-tax losses of £709.4m in the Co-operative Bank in the six months to the end of June.

This tells us something about the financial crash itself. That financial crash we all know was caused by a lethal combination of several things. Firstly, there was that greed of shareholders for profits. Get anything, do anything, to make profits! Second there were those bankers chasing bonuses. They’d do a short term deal to boost their bonus without caring whether it made money for the bank in the long term. And thirdly of course there was that awful mixture of casino banking alongside government guarantees. The too big to fail problem: the banks got to gamble and if they won then they got the profits, if they lost then

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Posted: 2nd, September 2013 | In: Money Comments (2) | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink