Time to leave the co-op bank?

Aurelius Capital  isrun by Mark Brodsky, formerly of Paul Singer’s Elliott Capital Management. Both Aurelius and Elliott subsidiary NML bought Argentine debt on the cheap after Argentina’s 2002 default. Argentina’s economy has now recovered partly thanks to its creditors agreeing reduced debt repayments, but the vulture funds are seeking to enforce the debt in full in order to make huge profits at the expense of all the other creditors (figures -Haze)

Campaigners and account holders of the Co-op Bank, including Action Aid, Animal Aid, Burma Campaign, Ethical Consumer, Friends of the Earth, Greenpeace, Oxfam, People & Planet, Pesticide Action Network, ShareAction, Sustain, Up the Ethics, War On Want and World Development Movement are petitioning the bank to return to mutual ownership.

A parallel campaign run by the FairShares Association is calling on the Government to exercise its powers under Section 76 of the Companies Act to force the bank to change its name if it does not return control to the Co‑operative Movement within a fixed timeframe.

The UK Financial Conduct Authority (FCA) can use its consumer protection powers to protect customers from being misled by the use of the word “co-operative” in the bank’s name.

Others are proposing account holders should abandon the bank in favour of the Nationwide, other building societies or credit unions. Triodos bank doesn’t currently provide current accounts but it is rumoured it may do so before long.

In the view of The Haze ethical banking within the current monetary system is impossible – if you want a genuine alternative then we suggest you head over to the good folks @ Positive Money and support their campaign.