The Co-operative Bank has been closed to new business while its Co-op parent group decides whether it can be saved from bankruptcy.

Panic

The Co-op bought the Britannia Building Society a couple of years ago for stupid money and has made big losses ever since.  Its business model of shunning profitable business to invest in left wing political projects and the global warming scam have done nothing to improve their profitability.  Nor has laundering a quarter of their profits through the Co-operative Party to prop up the Labour Party with MP sponsorships and party funding.

Labour owes £3.8m to the Co-operative Bank whilst receiving 47 donations last year from the Co-operative Bank totalling nearly £111k.  Co-operative Bank also has another bank which it uses to fund Labour – Unity Trust Bank.  Labour owes Unity Trust Bank nearly £1.9m.  The Co-op also donated over £1m to the Co-operative Party via various subsidiaries last year which the Co-operative Party uses to sponsor Labour MPs.

If the Co-op reined in its spending on political activities and concentrated on running its bank as a business it might not have found it being downgraded 6 points to junk status by Moody’s and be facing the prospect of winding the bank up or selling it off.