Co-Operative Group Appoints Niall Booker as CEO of Co-Operating Bank

By Costas Paris

LONDON--Niall Booker has been appointed as the new chief executive of the Co-Operative Bank PLC (CPBB.LN) and deputy CEO of the Co-Operative Group, the group said Monday.

The Co-Op said Mr. Booker, 54, a former chief executive of HSBC's North America business, will take on his new roles from June 10.

"The board and I are confident that Niall will add tremendous value, helping us work through the complex issues that we currently face as we work to reposition our bank," said Euan Sutherland, Chief Executive of the Co-operative Group.

The future of the Co-Op's banking arm has been in doubt since its credit rating was downgraded earlier this month by ratings company Moody's. The downgrade came after the collapse of the bank's effort to take over the 632 branches from Lloyds Banking Group (LLOY.LN) that led to the departure of former CEO Barry Tootell.

Moody's said the downgrade of the bank's credit worthiness by six notches to junk on concerns over the bank's portfolio of property mortgages.

The bank is in negotiations with the Prudential Regulation Authority, the Bank Of England's new financial watchdog, to sell its general insurance operation to raise funds.

The Co-Op Bank last week said it will stop lending to new business customers in an effort to save capital.

Write to Costas Paris at [e-mail]

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