Co-op appoints new senior director amid scandal

Posted - Dec. 12, 2013 at 3:22 a.m.



This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

LONDON (AP) - Co-operative Group, the British mutual, has appointed a former Treasury minister to oversee a review of governance at its banking unit, whose former chairman resigned amid allegations of drug use.

Paul Myners, whose previous jobs include being chairman of The Guardian Media Group, will take on the newly created role of senior independent director.

The scandal emerged after the Mail on Sunday posted a video showing Paul Flowers, the former chair of Co-op's banking unit, allegedly buying illegal drugs.

The bank has been troubled since its 2009 acquisition of the Britannia Building society. It had to plug a 1.5 billion-pound ($2.4 billion) black hole in its finances and agreed to a rescue plan that saw hedge funds take a huge share of bank operations.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

SIGN UP FOR THE KSL.COM NEWSLETTER

Catch up on the top news and features from KSL.com, sent weekly.
By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Policy.

KSL Weather Forecast