LONDON (Reuters) - Britain’s financial regulator has launched an investigation into problems at the Co-operative Bank CPBB_p.L, including the role played by former senior managers, it said on Monday.
“The Prudential Regulation Authority (PRA) confirms it is undertaking an enforcement investigation in relation to the Co-operative Bank and as part of that investigation will consider the role of former senior managers,” it said in a statement.
Co-op Bank fell under the control of investors including U.S. hedge funds after a 1.5 billion pound ($2.5 billion)capital shortfall was exposed. Its problems were exacerbated when former chairman Paul Flowers was arrested as part of an investigation into the supply of illegal drugs.
Reporting by Matt Scuffham; Editing by Steve Slater