Co-op ditches stake in bank

THE Co-op has sold its final 1pc stake in Co-op Bank, provoking fresh calls for it to be stripped of its name.

The mutual had been left with the small holding after a £700m rescue deal to get the bank back on its feet earlier this year saw its stake cut from 20pc.

This has now been sold for £5m to an existing shareholder.

It means the bank is now wholly in the hands of US hedge funds.

Last night, John Mann, a member of the Treasury select committee, said Co-op Bank was now masquerading as a workerowned business and should change its name. He added: ‘This sale goes completely against the principle of a true co-operative.’

But the bank insists it still has a right to use the Co-op brand.

It said: ‘Co-operative ethics and values are embedded in the constitution of the bank.’

Co-op chief executive Steve Murrells said the stake was sold because the group was left with ‘no influence on that business’.

He added: ‘Selling it gives us an opportunity to focus on our core businesses.’ Asked about use of the Co-op name, he said: ‘It is not a decision for us.’ Any decision on the name falls to the Financial Conduct Authority or Business Secretary Greg Clark

However a spokesman for the Department for Business claimed that there was no need to change it.

Co-op Bank is still struggling to recover from near-collapse in 2013 after a £1.5bn black hole was discovered in its accounts.

Co-op profits rose to £25m for the first half of 2017. The mutual gave members £29m and community projects £6m.