Co-op Bank rescue deal sees hedge funds take 70% control

Co-op Bank has secured a rescue deal with creditors over the weekend and will release details later today, according to reports.

The deal will see the group's creditors - led by about six hedge funds - get about 70% of the bank's shares, leaving Co-op with 30%, the BBC reports. The deal will mean about 1,000 staff will lose their jobs and see 15% of branches closed, although the bank's future is secure. The rescue was prompted by the discovery of a £1.5bn hole in its balance sheet caused by bad loans and the 2009 merger with Britannia building society. The BBC said the Co-op Group wants to protection the co-operative culture of the bank by writing a pledge "only to do what it sees as ethical business into t...