Readers of this board might like to know that if you have suffered losses resulting from relying on public information the Co-op bank disseminated which they knew to be false e.g. the 2012 accounts then you can make a claim against the Co-op bank for loses.
I think it is time for everyone affected here to take action and make a claim against the Co-op bank for any losses they have resulting from the false market in the listed securities CPBB/C/A that the Bank and its directors allowed. I have written to the bank's head of compliance 'jane.cliff@cfs.coop' and to 'niall.booker@cfs.coop' as well as the fca who can be found at 'Catherine.Batchelor@fca.org.uk' and 'market.abuse@fca.org.uk'
The letter I wrote is posted below. It would be in everyone's interests to send in a similar claim at this point. It is clear from all the evidence from the TSC hearings and elsewhere that the Co-op have wilfully misled investors and we have a claim against losses suffered.
Please act in a similar way now:
Head of Compliance
The Co-operative Bank p.l.c.,
P.O. Box 101,
1 Balloon Street,
Manchester, M60 4EP
Dear Sir/Madam
I am writing to make a formal claim against the Cooperative Bank PLC for losses suffered (as detailed in the table below) with respect to false claims and statements that the bank made about its capital position and general trading state leading up to its recent interim announcement dated 29th August where the bank revealed serious capital problems, very large write downs of due to a failed IT system, and large impairment charges on both its core and non-core loan books which has led to the decline in the traded price of these securities and thus my loss.
Security Purchased Position Paid Price Loss
XXXXXXXXXXXXXXXXX
Total Loss £ XXXXX
At the time the securities were purchased I relied on due diligence I carried out on the capital positioning of the bank primarily, but not limited to, its 2012 Annual Financial report and following conference call which for reference I copy here http://www.co-operative.coop/Corporate/PDFs/The-Co-operative-Bank/2012/Bank_Financial_Statements_2012.pdf and here http://www.co-operativebankinggroup.co.uk/corp/images/21stMarch2013.MP3.
In particular taking extracts from this report and associated conference call we see
• The Director’s assessed the Trading and Banking…
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I had a long line of CPBA 5.55% bonds (I retain about half of these and have taken losses on the remainder). I bought these on the basis that the Co-op Bank was reporting good Tier 1 ratios and the yield was high. I realised at the time that a high yield was telling me something about the riskiness of the asset.
The view I take now is that as I may end up a shareholder following the hedge fund negotiations, a class action against Co-op Bank would be an own goal.
If you have crystallised your losses by selling the bonds then you may have a case. If you have unrealised losses then a little patience wont change your argument (which is fair). But you may yet be reasonably satisfied with the 70% shares scheme (with an as yet unknown option for smaller players) when you see the details and their effect on the bond prices.
One could also argue that by losing 70% of the Co-op Bank to the bondholders the Co-op have already paid up for any misrepresentation and poor management.
siesta
