The Co-op Bank has agreed a £700m rescue deal with US hedge fund investors that will see it continue as a stand-alone business.
It ends four months of uncertainty for the troubled lender’s four million customers after it was formally put up for sale.
The bank said the deal would enable it “to thrive as a stand-alone entity, with values and ethics and strong customer services continuing at the heart of its business”.
The announcement confirmed an exclusive report on Sky News that revealed key details of the rescue deal – its second since 2013 when the hedge funds took control following the bank’s near collapse.
A major sticking point in the negotiations had been tensions over the division of the £10bn pension scheme shared by the Co-op Group and Bank, and the ongoing relationship agreement between them.
It was confirmed by the bank that it had agreed to separate itself from the scheme, leaving the lender solely responsible for its employees’ retirement savings.