Five questions answered on the Co-op's new rescue deal

The bid to plug a £1.5bn gap.

The Co-operative Bank has unveiled a new deal to fill a £1.5 bn gap in its finances. We answer five questions on the deal.

What does the deal consist of?
The deal consists of a "bail in" deal, whereby bond holders will be offered shares in the bank. It will also result in a stock market listing of the bank on the London Stock Exchange.

What does this mean essentially?

It ultimately means that the investors and the group make a joint contribution to the recapitalisation of the bank.

It also means that in the short term bond holders will lose out. However, eventually they will be able to exchange their bonds for shares gaining a minority stake in the bank, which will allow them to benefit from the eventual upside of the bank.

The bank said the number of shares and bonds offered in exchange for current holdings would be finalised in October, when its offer will be launched officially.

How many investors will actually be affected by the plan?

Seven thousand retail investors who own permanent-interest bearing shares (Pibs), which pay dividends of between 5.5% and 13% a year, will be affected by the plan.

If the bank is being listed on the stock exchange, does this mean the bank has changed its original ethos?

Chief executive Euan Sutherlandm, speaking to the BBC, said this was not the case.

"We have always been a PLC [public limited company] wholly owned by the Co-operative Group. The majority of the bank will still be owned by the Co-operative Group. There will be no change to our ethos or the way we run our bank," he told the BBC.

Is the Co-operative group also contributing to the rescue plan?

Yes. The Co-operative group will provide extra capital.

The bank also said it had also approved the plan in full with the banking industry’s new regulator the Prudential Regulation Authority.

Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

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Donald Trump vs Barack Obama: How the inauguration speeches compared

We compared the two presidents on trade, foreign affairs and climate change – so you (really, really) don't have to.

After watching Donald Trump's inaugural address, what better way to get rid of the last few dregs of hope than by comparing what he said with Barack Obama's address from 2009? 

Both thanked the previous President, with Trump calling the Obamas "magnificent", and pledged to reform Washington, but the comparison ended there. 

Here is what each of them said: 

On American jobs

Obama:

The state of our economy calls for action, bold and swift.  And we will act, not only to create new jobs, but to lay a new foundation for growth.  We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together.  We'll restore science to its rightful place, and wield technology's wonders to raise health care's quality and lower its cost.  We will harness the sun and the winds and the soil to fuel our cars and run our factories.  And we will transform our schools and colleges and universities to meet the demands of a new age.

Trump:

For many decades we've enriched foreign industry at the expense of American industry, subsidized the armies of other countries while allowing for the very sad depletion of our military.

One by one, the factories shuttered and left our shores with not even a thought about the millions and millions of American workers that were left behind.

Obama had a plan for growth. Trump just blames the rest of the world...

On global warming

Obama:

With old friends and former foes, we'll work tirelessly to lessen the nuclear threat, and roll back the specter of a warming planet.

Trump:

On the Middle East:

Obama:

To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect. To those leaders around the globe who seek to sow conflict, or blame their society's ills on the West, know that your people will judge you on what you can build, not what you destroy. 

Trump:

We will re-enforce old alliances and form new ones and unite the civilized world against radical Islamic terrorism, which we will eradicate completely from the face of the earth.

On “greatness”

Obama:

In reaffirming the greatness of our nation we understand that greatness is never a given. It must be earned.

Trump:

America will start winning again, winning like never before.

 

On trade

Obama:

This is the journey we continue today.  We remain the most prosperous, powerful nation on Earth.  Our workers are no less productive than when this crisis began.  Our minds are no less inventive, our goods and services no less needed than they were last week, or last month, or last year.  Our capacity remains undiminished.  

Trump:

We must protect our borders from the ravages of other countries making our product, stealing our companies and destroying our jobs.

Protection will lead to great prosperity and strength. I will fight for you with every breath in my body, and I will never ever let you down.

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland