Organisers of the Save Our Bank campaign to keep the Co-operative Bank ethical, which is being led by the Ethical Consumer magazine (itself a cooperative, of course), last week met with the Co-op Group’s chief executive Euan Sutherland. The campaign issued its latest online newsletter last Thursday.
My own view is that, with the capital restructure and the arrival of the hedge funds, the Co-op Bank will be well outside what could legitimately be called a cooperative business so in that sense the moment to ‘save’ it has passed. But nevertheless it is clearly valuable to pressure the bank to retain an ethical approach to the banking business. We need to remember though that (even given recent media attention) its reputation as an ethical bank is currently the Co-op Bank’s USP so it is hardly in the investors’ own interests not to support it, at least with lip-service.
Perhaps the most interesting discussions within the Save Our Bank campaign, I think, are around the possibilities of future re-mutualisation. I would be delighted to see this, although realistically I think you have to conclude that the prospects are currently very distant. But this links directly to the issue of suitable cooperative capital instruments for cooperatives, which I have been banging on about endlessly in recent months and which I will seize this moment to mention yet again.