Co-op Bank may lose name as Flowers drug scandal deepens

The Co-operative Bank could lose its name as a result of the escalating scandal surrounding Paul Flowers’ alleged drug use.

Police have raided the former chairman’s home and Tories are demanding answers over Flowers’ links to senior figures in the Labour party.

Business Secretary Vince Cable said he was considering whether the Co-op Bank should keep its name following revelations over Flowers’ apparent purchase of class A drugs and adult images found on his computer.

The move would be a blow to the embattled bank, which was forced to sell its insurance arm earlier this year.

Use of the term ‘co-operative’ requires the consent of the secretary of state on a change of ownership, which is what will happen when the bank recapitalises. The recapitalisation will leave the Co-op Group with just a 30% stake, with the rest mostly held by hedge-funds.

 

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