Maybe the Co-op should walk away from its bank

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As the FT notes this morning:

The Co-operative Bank is preparing for multiple investigations lasting for years as regulators try to get to the bottom of the failures that unhinged the mutual.

As pressure mounts for the bank to finalise its restructuring plan, probes by UK regulators are expected to be announced imminently and the Treasury is preparing to order its own.

The timing is particularly sensitive because, over the next two weeks, the Co-op must secure approval from bondholders for a sweeping restructuring of its banking business.

It seems to me that there is an obvious solution here. The Co-op should walk away from this bank. It will only have 30% left at best anyway. What there is left is very much more the Britannia than it is the bank that existed pre that takeover. And there's not a hope of the Co-op ethos surviving now.

It's time to walk away, give up the 30% to the hedge funds and ask new owners to rename it the Britannia Bank.

For the sake of the Co-op movement it would be the best thing to do whilst requiring those who made the mess - many now retired - to full co-operate with any investigation.

And what we then need is a proper mutual bank for the UK.