The Co-op Bank is set to dodge financial penalties over the failings that led to its near-collapse and a £1.5 billion bondholder-funded bailout after regulators concluded that fines would threaten the lender’s turnaround.
The Financial Conduct Authority and the Prudential Regulation Authority are expected today to announce the closure of their joint investigation into the bank and the black hole that was discovered at the heart of its finances. Despite finding evidence of weak oversight of the business, they will not impose large fines.
Officials are understood to have decided against hitting the bank with a multimillion-pound penalty with an eye to the continuing efforts to repair its capital base, according to unnamed sources cited by Sky News.
They are expected, however, to continue with