Co-operative Bank appoints new chief executive

28 May 2013

The Co-operative Bank has appointed a new chief executive.

Former head of HSBC's North American operations Niall Booker will take over the troubled lender, which is currently facing questions over its capital position.

Earlier this month, ratings agency Moody's downgraded the Co-operative's debt to "junk" status, prompting Barry Tootell, Mr Booker's predecessor, to resign. The bank is currently in talks with regulators about its capital position.

There are several UK banks that need to raise a total of £25 billion between them to strengthen capital positions and protect the banking system against future crises.

Earlier this week, the bank halted its new business lending amid concerns it needed to preserve its capital.

The Co-operative Bank recently pulled out of its deal to buy 631 Lloyds branches, with the company citing the continued economic downturn as well as tougher regulatory environment as the reason for the deal falling through.

However, Euan Sutherland, the chief executive of the overall Co-operative Group, said the bank had "a strong future" ahead.

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