1 Mar 2014

Smoking email points to dysfunctional board

Submitted by moderator

And e-mail sent by former deputy chairman of the Co-operative Bank, Rodney Baker-Bates, implies that KPMG might be asked to perform "financial engineering" to support the case for the Co-op Bank takeover of Lloyds Branches.

The e-mail was one of a number supplied to a treasury select committee investigating the failure of the deal. The Independent points out that the correspondence "paints a picture of a profoundly dysfunctional institution and casts an unflattering light on bitchiness and backbiting in the boardroom".

The Independent goes on: "Mr Baker-Bates claimed other executives had privately expressed concerns to him about the deal but crucially “did not have the guts to express them in public forum”.

Read the Independent article here

This echoes what we have pointed out here at Springboard.coop "The group board is so overburdened with strategic detail, so hedged in by management, that they dared not challenge the strategic ambition of the executive".