Here you can browse the report together with the Proceedings of the Committee. The published report was ordered by the House of Commons to be printed 21 October 2014.
Terms of Reference
Timeline
1 Introduction
2 Background
Searching for scale
Governance
The Lloyds divestment
3 Bidding for Verde
The run up to Verde: February to July 2011
Co-op
The regulator
The initial bids: July to December 2011
NBNK
The lapse of exclusivity, the final bids and Heads of Terms: January to July 2012
Should the regulator have stopped Co-op's Verde bid?
Conclusions
4 The financial collapse of the Co-operative Bank
Introduction
Britannia and other impairments
The merger with Britannia
New regulatory guidance and the capital shortfall
Why was Co-op affected so badly and so late?
Conduct redress
Banking IT platform replacement
Direct effect of the Verde transaction of Co-op Bank's financial position
Reported losses versus the capital shortfall, and other factors in Co-op Bank's financial collapse
The collapse of the Verde deal
5 Governance
Links between the bank and the group
An oversized board with insufficient financial experience
Paul Flowers
The Approved Persons Regime
Governance and Verde
The Kelly report on the overall effectiveness of Co-op Bank's governance
6 Was the bidding process fair?
Lord Levene's allegations
Were the goalposts moved?
Whose bid was better?
Financial terms
Execution risk
Was there political interference?
Lord Levene's meeting with the Governor
Evidence from Lloyds
Evidence from UKFI, Treasury officials and the Government
Political pressure on the regulator?
Political pressure on Co-op?
Did Lloyds simply want an IPO?
7 Events following the collapse of Verde and the emergence of the capital shortfall
Recapitalisation and changes to governance
Lessons for the mutual model?
8 Questions for future reviews
Conclusions and recommendations
Formal Minutes
Witnesses
List of written evidence
List of Reports from the Committee during the current Parliament
Oral evidence - HC 728-II
Tuesday 18 June 2013: António Horta-Osório, Group Chief Executive, and Sir Winfried Bischoff, Chairman, Lloyds Banking Group
Wednesday 4 September 2013: Neville Richardson, former Chief Executive Officer, Britannia Building Society and the Co-operative Bank
Tuesday 22 October 2013: Peter Marks CBE, former Chief Executive, The Co-operative Group
Tuesday 29 October 2013: Barry Tootell, former Chief Executive, Co-operative Banking Group
Wednesday 6 November 2013: Reverend Paul Flowers, former Chair, The Co-operative Bank, and former Deputy Chair, The Co-operative Group
Tuesday 19 November 2013: David Anderson, former Chief Executive, Co-operative Financial Services
Tuesday 3 December 2013: Warren Mead, Partner, Financial Services, Transactions & Restructuring, Andrew Walker, and Jonathan Hurst, Partners, KPMG; Tim Wise, and Conor Hillery, Managing Directors, UK Investment Banking, JP Morgan Cazenove
Tuesday 7 January 2014: Clive Adamson, Director of Supervision, Financial Conduct Authority, and former Director, Major Retail Groups Division, Financial Services Authority
Tuesday 21 January 2014: Lord Levene of Portsoken KBE, former Chairman, and Gary Hoffman, former Chief Executive Officer, NBNK Investments plc
Tuesday 28 January 2014: Rodney Baker-Bates, former Chair, Britannia Building Society and former Deputy Chair, The Co-operative Bank, and David Davies, former Deputy Chair, The Co-operative Bank
Tuesday 11 February 2014: Andrew Bailey, Deputy Governor, Prudential Regulation, and Chief Executive Officer of the Prudential Regulation Authority, Bank of England, and former Managing Director of the Prudential Business Unit, Financial Services Authority
