LONDON (Reuters) - Co-op Group’s CWSGR.UL former Chief Executive Peter Marks has described the problems at its banking arm as “a tragedy” but said he wasn’t the driving force behind its ill-fated acquisition of the Britannia Building Society in 2009.
“I can’t take responsibility for something I wasn’t in full control of, which was the bank. I wasn’t driving the Britannia deal but I absolutely voted for it when it was proposed,” Marks told a committee of British lawmakers on Tuesday.
Co-op said on Monday it would hand over its banking arm to creditors including U.S. hedge funds in order to seal a 1.5 billion pound ($2.4 billion) rescue of the country’s seventh-biggest lender.
The Co-operative Bank’s CPBB_p.L problems have been blamed in part on soured commercial real estate loans that it inherited from Britannia. ($1 = 0.6189 British pounds)
Reporting by Matt Scuffham, editing by Sinead Cruise