UK watchdog says Co-op Bank chair appointment "not a mistake"

LONDON Tue Jan 7, 2014 5:34am EST

LONDON Jan 7 (Reuters) - Britain's financial watchdog said it had no regrets about approving the appointment of Paul Flowers as chairman of the Co-operative Bank in 2010.

Last year the bank fell under 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 last year as part of an investigation into the supply of illegal drugs.

"I don't think it was a mistake in terms of the decision I made at the time," Clive Adamson, director of supervision at the Financial Conduct Authority, said on Tuesday.

"There are lessons to be learned from what happened," Adamson told parliament's Treasury Select Committee.

Adamson said he was "disappointed" that "at no time" did anyone from the bank or public life alert the regulator about some of Flower's alleged misdemeanours.

The FCA and the Bank of England's Prudential Regulation Authority opened an enforcement investigation into Co-op on Monday.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.