Qataris may rescue the crisis-hit Co-op Bank

THE crisis-hit Co-op Bank could be rescued by Qatari investors – dealing a fresh blow to its claims to be an ethical business.

It is desperately seeking extra cash to shore up its financial position, and bosses have reportedly held talks with companies from Qatar and Switzerland.

Swiss firm Interritus and Middle Eastern business Al Faisal Holding are said to have formed a consortium and held several rounds of talks with the bank’s board and advisers. Any Swiss involvement is likely to raise eyebrows due to the country’s historically lax tax regime.

Meanwhile Qatar has been accused by its neighbours of funding Islamic State. There is no suggestion that Interritus or Al Faisal have been involved in any wrongdoing. It would mark the bank’s second rescue in four years. US hedge funds bailed it out in 2013 after a £1.5billion black hole was found in its accounts, forcing the resignation of scandal-hit chairman Paul Flowers.

Mounting losses since then mean £750million of fresh cash is needed, and bosses put the business up for sale in February. The Co-op Bank declined to comment.