Banking expert explains why Co-op made 'whopping' loss
The Co-operative Group has reported heavy losses as a result of a huge write-down of assets at its troubled banking arm.
The group lost £559m in the first half of the year, having written off £496m of bad loans at Co-op Bank, mostly relating to Britannia Building Society.
Speaking to BBC Breakfast, independent banking analyst Frances Coppola said "for a bank that size, that's a whopping loss" but ordinary savers did not need to worry.
The bank also faces a £1.5bn capital hole in its balance sheet, which regulators say it must fill.
"If they can't plug that hole, then it may be that the regulators will say the bank has to be wound down and that would be rather more urgent."
29 Aug 2013