Co-op Bank to Raise £400m

Co-op Bank to Raise £400m.

It has been discovered that additional costs are needed at the Co-op bank after the banks previous mis-conduct and poor documentation.

The bank plans to offer new shares to raise an extra £400m to cover these costs.

The full disclosure of these extra costs will be released in April, but the majority is being linked to PPI mis-selling and lapses in the provision of mortgage lending.

The Co-op Bank was previously bailed out last year after the bank saw a £1.5bn capital shortfall. Some of the reasons around this are being linked back to its merger with Britannia Building Society in 2009.

The bank is already cutting its staff and selling parts of its business in an effort to survive.