Former director of Co-op Bank Roger Gorvin has written to the chief executive of its parent company, accusing it of unethical behaviour in its planned rescue deal.
The Telegraph reports Gorvin, who was an executive member of the bank’s main board until retirement in 1993, said the Co-op Group seemed to want to ‘minimise its involvement’ in the bank’s rescue in order to ‘retain capital to solve its own trading problems’.
He said it looked as though the group wanted to inflict pain on the bank’s bondholders instead, many of whom were not institutional investors who could afford to take the losses.
