Hedge Funds Seek To Reassure On Co-op Bank

Oct 28 2013 | 11:59am ET

The two hedge funds that have stripped Co-operative Group of its control over its bank are promising that the company's ethos will not change as a result.

Aurelius Capital Management and Silver Point Capital, which are providing £1 billion in cash to the Co-op Bank in exchange for Co-op Group's agreement to cut its stake to 30%, moved to assuage concerns that even bigger changes were afoot for the formerly mutually-owned bank.

Co-op Bank is "unique for its ethics and heritage, which are an essential component of the bank's differentiated approach. It is important to us that the bank maintains its unique character and ethos," the hedge funds said.

The firms added that Co-op Group will remain the bank's largest shareholder, and that "the bank will benefit by this connection to the co-operative movement."

Co-op struck the deal with Aurelius and Silver Point to avoid nationalization. The Bank of England has set an end-of-the-year deadline for the bank to recapitalize.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The healthcare sector went on a tear beginning in 2011, thanks in large part to the passage of the Affordable Care Act and its impending implementat