The Courier & Advertiser (Perth and Perthshire Edition)
Former Co-op Bank chairman banned from financial services
Disgraced former Co-operative Bank boss Paul Flowers has been banned from the financial services industry by the City watchdog.
Mr Flowers was chairman of Co-op Bank between 2010 and 2013, overseeing its near collapse after revealing a £1.5 billion black hole in its accounts.
He was forced to step down amid allegations he used illegal drugs, as well as claiming inappropriate expenses.
The Financial Conduct Authority said Mr Flowers’ conduct demonstrated a “lack of fitness and propriety” required to work in financial services.
It said Mr Flowers had demonstrated an “unwillingness to comply” with its and other legal, regulatory and professional requirements and standards.
In a damning statement, the watchdog said it believes Mr Flowers’ disregard for the standards he is expected to meet demonstrates a “lack of integrity” and that any future involvement by Mr Flowers in the financial services industry risks “undermining consumer and market confidence”.
Mark Steward, executive director of enforcement and market oversight, said: “Mr Flowers failed in his duty to lead by example and to meet the high standards of integrity and probity demanded by the role.”
Separately, the Treasury also announced it has launched a new independent review into supervision of the Co-operative Bank between 2008 and 2013.
It will look at the “actions, policies and approach” of the former City watchdog, the Financial Services Authority, and the current Prudential Regulation Authority.
It will cover a “significant period” for the Co-op Bank, including its aborted bid to buy 632 branches from Lloyds Banking Group in 2013, according to the Treasury.