November 4th, 2013

Labour Owe Troubled Co-Operative Bank £3,391,000

The Co-Op bank’s £1.5 billion black hole will see 50 branches closed after the ‘ethical’ bank went cap in hand to hedge funds rescuers.

In 1999 the Labour Party borrowed £3,580,000 from the bank and only £189,000 has been repaid.

Miliband and Balls owe the troubled lenders £3,391,000. How many jobs could they save if they paid it back?


98 Comments

  1. 1
    Prime Minister David Cameron says:

    How do we expect millionaire MP’s to heat their mansions if not for the generosity of the tax payer?

    Like

    • 3
      Huhne. Chris - D Wing says:

      Hob nobs anyone?

      Like

    • 8
      What a plonker. says:

      The Labour party did not think that they would ever have to pay the money back .
      Now it will be different .The new owners should send in the bailiffs .

      Like

      • 18
        mad, swivel-eyed loon says:

        Yep, straight to the courts, get a CCJ and then (because it’s unsecured and over £750) apply for a bankruptcy order.

        I’ll be glad to serve the papers.

        Like

      • 19
        mad, swivel-eyed loon says:

        Yep, straight to the courts, get a CCJ and then (because it’s unsecured and over £750) apply for a b’ankruptcy order.

        I’ll be glad to serve the papers.

        Like

      • 78
        Anonymous says:

        Unfortunately I think if they send the bailiffs in, all they will get is a Cameron.

        Shiny gloss on the outside. Nothing on the inside.

        Like

    • 27
      herewegoagain says:

      Get Blair to pay the debt, he can afford it.

      Like

    • 35
      Stella Creasy - A depreciating asset says:

      But the money has more than been repaid through the activities of the 40 MPs the Co-op bank owns.

      Like

      • 79
        Anonymous says:

        Did you say Ed Balls (co op) MP

        Like

      • 80
        Anonymous says:

        Very strange why the lib dems and labour were so supportive of the co op lloyds merger… Project Verde…

        Surely they didn’t want taxpayers cash in LloydS to prop up their busted flush ethical coop bank did they ?

        Like

    • 42
      andy crapp says:

      the caring sharing BILK

      Like

      • 49
        Spiv says:

        (Reuters) – The Co-operative Group will hand control of its banking arm to investors including U.S. hedge funds to plug a 1.5 billion pound capital shortfall, it said on Monday.

        http://uk.reuters.com/article/2013/11/04/uk-coop-rescue-idUKBRE9A304W20131104

        the irony of it/uk socialists party bank is bankrupt and has to be bailed out by the “evil capitalists – it started in america”

        if you look at the lending practices of the coop bank you will find details of loans made at below market rates to dubious organisations which do not have the capacity to repay the loans

        I doubt the new owners are going to continue allowing the generous loan repayment terms to such dubious organisations.

        Like

        • 88
          Working For Uncle Sam says:

          You lot can spin this all your like, but cannot hide the fact that this goes deeper than your simple-minded hate for all things left-wing. All this cheering, when yet another UK firm will be forced to hand over full control to overseas investors – including U.S. hedge funds. Is no one here concerned about the danger to both British customers and local job of likely US asset striping? Also, do not any of your British readers have any involvement with the Co-op Bank?

          Like

        • 93
          Anonymous says:

          “…Oh, Howard Hughes
          Did your money make you better?
          Are you waiting for the hour
          When you can screw me?
          `Cos you’re big enough
          To do the Wall Street Shuffle
          Let your money hustle
          Bet you’d sell your mother
          You can buy another…”

          Wall Street Shuffle

          Like

    • 54
      Wonga dott kom says:

      We wouldn’t touch these dodgey chancers with a barge pole.

      Like

  2. 2
    Ed Balls says:

    Too far too fast

    Like

  3. 4
    Andy Burnthem (1200 deaths and counting) says:

    Labtard bankrupted Britain; let’s hope the Co-op now bankrupts them.

    Like

  4. 5
    Kebab Time says:

    Did the Co-op take advantage of any of the bailout bungs handed out by the government?

    Like

  5. 6
    Steve Miliband says:

    Perhaps they are paying back with ‘points’

    Like

  6. 7

    Please Lord, let the receivers in and foreclose the loan…..

    Like

    • 11

      The spectacle of the millionaires’ row on the opposition front bench divvying up to keep the Looting Party solvent would allow me to die happy.

      Like

    • 13
      What a plonker. says:

      Do not forget that Labour are not known for their business acumen .
      Remember the clever way they sold our gold for peanuts .

      Like

      • 23
        Casual Observer 3 says:

        To be fair that was G’ordon B’rown who is demonstrably mental.

        Selling Gold to cover a bullion bank which had put itself in such a position that it could meet its delivery requirements is more the question that should be asked on that level.

        It was a fraud to perpetuate a much deeper fraud.

        The 2007/8 financial collapse was the final straw breaking on this matter.

        Like

  7. 9

    I hope those nice hedge fund people make them repay the loan, every little helps ….

    Like

  8. 10
    Casual Observer 3 says:

    Labour will probably not pay the debt.

    Labour is a criminal organization.

    Like

  9. 12
    Len McCluskey says:

    It will be paid back when I say so.

    Like

  10. 14
    well there's a surprise says:

    How many people will lose their jobs?
    Thanks to Labour, they’ll all be suffering a
    cost of living crisis.

    Like

  11. 15
    Liam Byrne says:

    But there is still no money left.

    Like

  12. 16
    Ed Millionaireband says:

    Fuck ‘em.

    Like

  13. 20
    Red Bank in the Pink says:

    Like

  14. 21
    Pete Gosling says:

    Labour can’t even manage their own finances.

    Until they get their house in order they must be barred from holding public office.

    Like

    • 87
      The Central Scrutinizer says:

      Agreed. They don’t have a plan they can stick to for keeping their party solvent – and yet they have the cheek to expect people to vote for them to manage the UK economy.

      It’s like putting an alcoholic in charge of a pub.Within 5 years the pub is run down, bankrupt, and he is either divorced, dead on skid row – or all three.

      Ed Balls couldn’t run a chip shop – let alone our economy. Can we have some competency based interviewing in the run up to 2015? Not likely….

      Like

  15. 24
    EU Funded Pro-EU Troll says:

    Vote UKIP

    Like

  16. 25
    What Labour Does with Money says:

    Like

  17. 26
    Ed Miliband and Ed Balls says:

    You can trust us to manage the economy. We believe in good borrowing.

    Like

  18. 29
    Chuka Balls says:

    Like

    • 44
      Julia Middleton CEO Common Purpose says:

      A couple of lefties go to participate in a multinational lovefest whose aim is our absorption into their one world government.
      More power to their elbow, I say.

      Like

  19. 31
    widescreen2010 says:

    Maybe by borrowing more they can pay down the debt.

    Like

  20. 32
    Casual Observer 3 says:

    The Co-Op is a local and relatively small problem.

    Eyes should be kept on Bank of America and C’itibank.

    The Co-Op problem is a part of this.

    Where is Cameron going to find his funding for HS-2 ?

    He perhaps should drop that plan for now.

    Like

  21. 33
    Anonymous says:

    Taken all but emergency money out of UK banks.

    Neither they, nor the government can be trusted. Without a functioning legal system, why trust another with anything of value if they provide no services and only abuse your privacy.

    It is simply idiotic to continue the traditions they rely on. Banks as they are today, were an after thought in the system, when money was made worthless. They are only essential to mitigate for the remoteness of the companies we have to interact with. They have just become the way to pay bills, instead of the old method of paying directly. It is time we considered them worthless.

    Like

    • 39
      Casual Observer 3 says:

      Wise move, but the cash should be converted into easily negotiable products as the currency is not safe.

      Physical bullion would be wise.

      The problem with the legal system is that it is now legal for deposits in the UK (and across much of the rest of the Western world) to be stolen by the state under the auspices of a ‘bail in’.

      The banks are no longer safe places to store money. The government guarantees for deposit insurance do not help when one has to wait a few years for settlement.

      Like

  22. 36
    Witty Moniker says:

    Grauniad readers’ favourite bank is now owned by American hedge funds?

    Ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha !

    Pfft.

    Ho ho ho ho ho ho ho ho ho ho ho ho ho ho ho ho ho ho ho ho ho ho ho ho ho.

    Like

    • 92
      Anonymous says:

      Not so fast with the “funny” comments. For it is possible that a number of this site’s supporters work for, or are customers of, the Co-op bank.

      Like

  23. 43
    Peter Hain's 7000 litres says:

    I am hoping Guido that you will shine a light on the just reported 12 month Heating Bill of the upright Peter Hain at £4750 .It would be instructive to have a photo of his 2nd home for unless it is a mansion, I cannot see how he could spend this sum on oil which he say is the heating system he uses. I live in a 5 bedroomed large house in one of the coldest places in Scotland, and live warmly for £2700.
    And I am there all year. Surely when hain isn’t he has frost stats and heat trace on his pipes.Oil is around 60p a litre so 7000 litres for an occasionally used 2nd home. Receipts, delivery dates and sq metres and times occupied and by whom may be fascinating.

    Like

  24. 45
    Jimmy says:

    You mean how much better would he bank be doing if people didn’t keep borrowing their money?

    Do you work for Gideon by any chance?

    Like

  25. 47
    Sue Doughty says:

    I heard their Co-op overdraft was £42 million and rising.

    Like

  26. 52
    kronos says:

    Please can i have an overdraft there. Interest doesn’t seem be charged…

    Like

  27. 53
    Displaced Brummie says:

    That’s well over £678,000 per branch.

    How many jobs have Labour cost? Utterly useless.

    Like

    • 60
      axe the telly tax says:

      They have cost more jobs than they ever created

      Like

      • 70
        Displaced Brummie says:

        Sadly, that’s true.

        Though they are very good at creating jobs for the boys and for the right kind of posh toff, like Tristram Hunt.

        Like

    • 95
      NE Frontiersman says:

      Plenty of paying back in LB Waltham Forest, who gave the Coop £1.5 million last year to put on firework displays.
      ‘It’s party time, send for the Coop!’ is a cry never far from our lips up here.

      Like

  28. 59
    geordieboy says:

    Don’t shop at the co- op it is too fucking expensive because you are contributing to Labour Party Funds. Probably the funeral service as well, just robbing the dead.

    Like

  29. 64
    ed says:

    I can’t see the point of saving the jobs of some modestly paid bank staff when doing so might endanger those of some very important London based Labour Party people.

    Like

  30. 69
    MayfairMagFan says:

    They also owe 14 years’ worth of interest.

    Unless the Co-op were stupid enough to let the Labour Party borrow interest-free. In which case they deserve everything they get.

    Like

  31. 76

    Well it’s top Marx for these two mathematical drongos.

    Like

  32. 86
    nick says:

    And this is why Labour ruined this country-and Balls ache and Millitwat will keep ruining us.

    Like

  33. 89
    Working For Uncle Sam says:

    Asset Stripping:

    “A fictional example of asset stripping can be found in the 1987 film Wall Street. In this film, the ruthless investor Gordon Gekko, played by Michael Douglas, purchases the failing airline Blue Star, under the pretense that he will restructure the company and return it to profitability. However, we later learn that he intends to liquidate all of the company’s assets.” Wikipedia

    And, as with the film Wall Street, the outcome of this sorry tale is not just that “Greed Is Good” – it is king!

    Like

  34. 96
    Anonymous says:

    The Co-Op bank are in trouble because they had to pay billions into the Financial Services Compensation Scheme fund to bail out the commercial banks that engaged in risky investment practices.

    Like

  35. 98
    John Tandy says:

    Labour is effectively bankrupt in more ways than one…..

    Like


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