By Costas Paris
LONDON--Niall Booker has been appointed as the new chief
executive of the Co-Operative Bank PLC (CPBB.LN) and deputy CEO of
the Co-Operative Group, the group said Monday.
The Co-Op said Mr. Booker, 54, a former chief executive of
HSBC's North America business, will take on his new roles from June
10.
"The board and I are confident that Niall will add tremendous
value, helping us work through the complex issues that we currently
face as we work to reposition our bank," said Euan Sutherland,
Chief Executive of the Co-operative Group.
The future of the Co-Op's banking arm has been in doubt since
its credit rating was downgraded earlier this month by ratings
company Moody's. The downgrade came after the collapse of the
bank's effort to take over the 632 branches from Lloyds Banking
Group (LLOY.LN) that led to the departure of former CEO Barry
Tootell.
Moody's said the downgrade of the bank's credit worthiness by
six notches to junk on concerns over the bank's portfolio of
property mortgages.
The bank is in negotiations with the Prudential Regulation
Authority, the Bank Of England's new financial watchdog, to sell
its general insurance operation to raise funds.
The Co-Op Bank last week said it will stop lending to new
business customers in an effort to save capital.
Write to Costas Paris at costas.paris@dowhjones.com
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