Tweet
divdiv class=story-body readability=25 span class=story-date#13; span class=date3 November 2013/span#13; span class=time-textLast updated at /spanspan class=time19:32 ET/span#13; #13; /span#13; #13; #13; #13; #13; #13; #13; #13; #13; p class=introduction id=story_continues_1The Co-operative Bank is set to give details of its rescue plan later after securing a deal over the weekend, the BBC has learned./p#13; pThe deal will see creditors to the group - led by a half dozen hedge funds - end up with 70% of shares in the bank, leaving Co-op Group with 30%./p#13; pIt could also mean some 1,000 job cuts and the closure of 15% of branches./p#13; pBBC business editor Robert Peston said barring unexpected disasters, the bank's future had been secured./p#13; pThe move follows the discovery of a £1.5bn hole in its balance sheet caused by bad loans and the 2009 merger with Britannia building society./p#13; span class=cross-headCulture/span#13; pOur correspondent says the Co-op Group hopes to protect the co-operative culture of the bank, by writing a pledge only to do what it sees as ethical business into the bank's principles or articles of association./p#13; pHe says it has taken the unusual step of communicating this change to the bank's constitution to its five million customers in newspaper adverts - to reassure them that the hedge funds will not and cannot turn it into just another bank./p#13; pAlso what may comfort others is that the rescue deal represents a big bank being saved without taxpayers having to put in a penny, he added./p#13; pTwo weeks ago the mutual group said it would lose overall control of the Co-op Bank following a restructuring of a rescue deal, which will provide the bank with extra capital./p#13; pIn June, the Co-op Group announced a plan to plug a £1.5bn capital hole in Co-op Bank's balance sheet./p#13; pThe group intended to put in £1bn of capital itself, with £500m coming from bondholders and owners of preference shares./p#13; pThe bank would then have been floated, with Co-op Group holding a 70% share. However, the bank's creditors, led by US hedge funds, rejected the plan./p#13; /div/divbrbrcentera href=http://www.wizardrss.comPowered By WizardRSS.com/a | a href=http://www.wizardrss.comFull Text RSS Feed/a | a href=http://www.amazon.com/RFID-Blocking-Cards-Identity-Protector/dp/B00CJHZLEWRFID/a | a href=http://www.wpzonbuilder.comAmazon Affiliate/a/center