Co-op bank: Needs £1.5bn more capital

The Co-operative Bank on Monday said that it was putting in place a plan to increase its capital cushion by an additional £1.5 billion to tackle a hole in its balance sheet. The bank, which as a so-called mutual is owned by its 4.7 million customers, said in a statement that it would raise the new capital by issuing a bond and new shares, with £1.0 billion being raised this year and the remainder in 2014. "We have put in place a detailed and comprehensive solution to meet the current and longer-term capital requirements of the Bank. In doing so we have agreed a plan to ensure its future," said Euan Sutherland, chief executive of The Co-operative Group, the bank's parent.