Co-operative Bank customers told not to panic

THOUSANDS of local customers have been told not to panic after Guernsey’s Co-operative Bank – which handles around £400m. – said it was closing.  

Co-Op bank, Co-Operative bank

THOUSANDS of local customers have been told not to panic after Guernsey’s Co-operative Bank – which handles around £400m. – said it was closing.

The decision will see 11 local jobs lost.

Savings, mortgages and investments are not under any threat, the bank yesterday insisted.

Regulator the Guernsey Financial Services Commission urged the branch’s 16,000 customers to take notice of the advice being offered by the Co-operative Bank and then decide where to ‘move their banking business’.

The bank needs to raise £1.5bn to plug a capital shortfall identified by regulators. A Co-operative Bank spokesman said the closure was part of its wider plan to ‘simplify its business’.

‘There is no need to panic, money is completely safe,’ said a Co-operative Bank spokesman.

Comments for: "Co-operative Bank customers told not to panic"

Blondie

Wow - that will be a large vacant unit.

Rich

KFC KFC KFC :-)

BadDonkey

KFC, no thanks . You think that's chicken ? LOL

Rich

Its not chicken, its KFC, duh....

PLP

As much as I love a greasy KFC when I'm in the UK I think we've probably got enough takeaway outlets....

Rich

What we have at the moment is nothing, which takeaway places would you visit at the moment sober, avoid them even when drunk now a days.

PLP

Depends what kind you mean Rich. If you're talking about the late night post clubbing haunts, it's been a while.....I'm getting a bit old for that!

I'm into fish and chips, curry and Chinese, most of the places I use are which are out of the town centre.

Don't get me wrong mate, I'm not starting a campaign....if KFC came over I'd be there! :-)

Bobby

Oh great they will still keep your mortgauge going for you ? of course they will that are making a fortune out of you / us .

I signed up 4 months ago moved banks everything now this happens I never signed up to only move one thing if they cant offer what i signed I will seek legal advice.

After all remember on a pound note it says a promise to pay NOT a Contract, so everyone should look into that i am sure if you write to your bank saying i promise to pay there is not much they can do if you promise to pay in court but give no dates lol

guernseyal

What about RBC at the bottom of St Julians Avenue? That has notices in the windows that the branch will close soon. I thought that was their flagship building.

guernseyal

Sorry meant RBS!

PB FALLA

Another one bites the dust

RIP FINANCE

Rich

If Finance fails in the island do you actually realise how many other sectors will suffer? From comments like this I don't think so...hotels, airlines, taxis, postal, catering, courier, restaurants, office supplies/maintainance, travel agents, etc etc, etc.

Comments such as finance should move out of island is a clear message that they have no idea of the foundation of the economy of their island.

BadDonkey

Indeed Mr. Falla , best we get the Vinerys rebuilt for the Tomatoes cor dammy la. !

Firestorm

Yes good riddance to the finance and you can take all the greed and any other bad rubbish that follows money with you and for all the short sighted people who say omg what will we all do if our saviours the finance leaves, well follow them. The rest of us will survive and find new ways to move on.

BadDonkey

I don't think this will be the last one to go, already some big names are closing in the UK, Bermuda, Canada, HSBC's are shutting, sooner or later it will hit Guernsey. Financial sector is not too big to fail here.

Downthepan

For those of you with mortgages with the local co-operative bank - despite receiving a letter of assurance today that all mortgages with those in Guernsey will all be fine - I have just had an interesting conversation with them and in essence this may not necessarily be the case - without giving details call them and find out for yourself - I have been given no guarantees or had anything said to me that has reassured me. In short the person I spoke to said at one point, because we are fixed that should we wish to look for a new mortgage company they may look to waive our penalty. Whoopee what about the re-mortgage costs ie re-swearing the bond etc and not to mention finding another company wishing to take on new customers. I expressed my views concerns that we may end up in a scenario that they might raise our interest rates beyond a rate that we cannot cope with and force us to move - this has happened to me personally five years ago which is why at my own cost I moved to the Co-op!!! - I also expressed a concern that there would no longer be a Guernsey contact and that those in the UK will not be aware of the Guernsey laws etc so if this is the case how would we re-mortgage and go through the Guernsey legal system. Again this was not addressed. For all those with mortgages with the local Co-operative Bank I suggest that we set up a new facebook group to voice our thoughts - please feel free to suggest a name and should the Co-operative wish to join the group and discuss concerns they will be welcome. All I have been advised by the Co-op is that someone will be in contact with me in a few weeks. Perhaps if we do have to move mortgages they may wish to cover our re-mortgage costs and provide compensation for the inconvenience.

Lynn

Why is everyome always looking for compensation?

The bank has said it will honour your mortgage. I do not believe that they would take the unethical approach of raising interest rates on just Guernsey mortgages in order to make you switch mortgage provider.

What I can foresee is that the mortgages in Guernsey are a valuable asset to the Co-op as they very rarely default and the loan to value % of the mortgages is normally quite a low percentage. Therefore this is a very saleable asset for the co-op.

It would not surprise me if they tried to sell on the Guernsey mortgages or securitise them.

Given the, well publicised, troubles the UK bank has I suspect they are looking for as much liquidity as possible so selling off long term assets for immediate liquidity would seem a great idea for them.

Charlie G

Let the records show....way back in the 70s and early 80s when i was in local tourism,a clear and loud warning went out, that the Island was embarking on the road of disaster by allowing all of its eggs to be laid in one basket....namely that of finance, and all the superficial lifestyle it attracted....the utterly absurd property prices being one fine example,insulting the hopes of locals to start out on the property ladder.

With horticulture now consigned to the history books,tourism all but buried,and unchecked Island expenditure,and the warning flags now fluttering in the financial world,the basket of eggs may well soon be scrambled.

It sounds all very negative i know,but this Island has ridden high on the waves with far to much complacent blinkered vision ,for far to long,with authority seemingly unable to guide this Islands future.

Read the writing on the wall,its clear for all to see.....who want to.

Terry Langlois

It's all very well saying "I told you so" but what did you do to help the island diversify in that time?

There is very little that the States could have done or can do to create different industries. We have enough enterprising people on this island that if there was another way to make money, people would do it.

The States did not choose to concentrate on finance, it chose to create an environment which helped the finance industry reach its potential. What would you have had them do? Put obstacles in the way in order to slow the growth of finance, without there being any viable alternative source of jobs?

Charlie G

T L...if you are replying to my thread,then ill be as polite as can be.

1) No where in the thread does it mention " i told you so".

2) Back in the 70s you didn't need to be a rocket scientist to see the path the Island was taking.

3) The Islands continued amateure approach to tourism,and all that goes with it,and lack of forward thinkinking has bought things to its present state....fact.

4) Finance was the easy option....sit back and watch it all happen.

5) Local enterprising people need the full force of encouragement from local authority to help bring a strong a future to Guernsey as is possible....not petty obsticles placed in their way.

6) You have no idea what i did to help the Island diversify, and why should you,but those who know me will remember the hours of hard work i put in back in 70 s and 80s to try to help the Islands tourist industry " diversify" into new ideas, and creation of the then Guernsey tourist Commitee, was one of my achievments,to help keep Guernsey tourism alive and kicking....sadly our Gov has never truely been tourist industry minded...playing at it would be another descripion.

7) I believe and always have ,that the Island can have a healthy future in tourism,there is so much here to make up for the lack of

sunshine....it just needs the will power to promote itself and understand what we have under our feet , from those

willing to go for it,with hard work.

8) The States are the " parents " to the people,and have a duty to listen ,and be seen to be trying with full force,to bring about all possible industries to Guernsey ,no matter how small.

9) Maybe the States did not choose the road of finance,but however things came about...the eggs all got laid in one basket.

10) Agreed this headline is about the Co op...not the whole finance industry.

Fingers crossed,for the those about to lose their Jobs,that they will find other possibilities.

Terry Langlois

Charlie G

On point (1), apologies, I misread your post and thought that you were saying that you had sent out the warning.

As for the remainder of my post, the States is often criticised for the fact that we are overly-reliant on finance, but I am not convinced that the States has actually failed to assist any other viable alternatives. The driving force must be us, the public and business community. The States can only ensure that there is an unhindered environment in which businesses can reach their potential.

I agree that tourism has been amateur and has not always taken the steps necessary to keep up with changing customers demands, and the changing nature of the competition. I put the blame for that firmly at the door of the owners of the outdated hotels and outdated "attractions". But even then, I am not sure that the industry could have completely avoided its decline given that we will never be a cheap destination in comparison to the package destinations.

Has the States failed to take specific action and thereby prevented other industries from growing? Has it placed petty obstacles in the way? I'm genuinely interested if you are aware of any examples. It sounds like your experience as a member of the tourist industry was a frustrating one - what action would you have liked the States to take?

Caroline

Is there any life in Guernsey apart from the usual comments in the letters on line page, do you work or just moan about everything the paper prints. Apart from an on/off switch on TV or Computer, there is a situation whereby you do not read the paper. Try getting a life. There are some lovely places on the Island to drive to and park up, maybe have a coffee, or GET A JOB. I have had my fair share of abuse on this website, but at least I work, pay my way, and try to make a reasonable comment, what is the rest of your excuses.

D

Caroline: I agree, the Co-op Bank is not big, sorry about job losses it is happening everywhere, peoples money will not be affected, you use a card anywhere. I am confused why stupid comments are KFC. If Macdonalds or KFC came to Guernsey they would be out of business within 4 weeks, Guernsey locals are so full of what they want, when they get it the novelty soon goes. Still dont see what KFC has to do with Co-op bank.

Island Wide Voting

D

... and does Caroline agree with you seeing as you're sharing the same PC?

Beanjar

Why do people bother to do this? Its rather pathetic to crave agreement so much that somebody needs to write their own. "Caroline: I agree..." Well of course you do 'D' - you wrote it yourself 9 minutes earlier!

Poor 'Caroline' whines " I have had my fair share of abuse on this website..." Well you might get less if you stop playing silly beggers.

notBeanjar

I totally agree Beanjar, you are a genius!

Donkey's Wotsits

Ha ha, not often I consider the comments here amusing, but Beanjar, you made me laugh.

Karen

Oh dear Caroline...or is it D? You stuffed up there eh?

And not quite sure what on earth your comment(s) are getting at...if you're so fed up with comments on this page or any other then get your own life and leave the rest of us to it!

bcb

I think i am awsome.

PLP

You are awesome bcb...your spelling needs a little work though! ;-)

bcb

haha i did post a follow up to my post agreeing with myself but it got lost somewhere.

I was taking the mick out caroline/d.

Wats rong wit mi speling? :))

PLP

Nuffink at all m8 i woz just takin the mik

enne biche

I think some people on this link are confusing high street banking with offshore finance.

Peter

Don't believe it panic! Remove your money NOW or lose it.

I knew two years ago they were in trouble when they stole my £13 savings from an old savings account.

OneWhoKnows

Listen to Peter. Take your money NOW and don't let Co-op bank convince you not to. It's YOUR money and YOUR choice.

Hark back to Landsbanki. For those who didn't care for Landsbanki customers at the time, the poor souls got their funds frozen and paid out in dribs and drabs and not the whole amount.

Caroline

Proving a point, are all these comments really true, I have a mate, his name is used a lot, never comments on this page, but his name is used. Like me, a lot is fabricated, tell the truth Guernsey Post. Do you really use real people!!!!!!!!

Watcher

Caroline / D or whatever you are calling yourself today,

"Tell the truth Guernsey Post,". What are you on about ? "Do you really use real people?" . What ? In an earlier couple of posts you apparently talk to yourself, you also seem to be somewhat paranoid. I would suggest an early night or perhaps take more water with it !

Island Wide Voting

Would that mate be Slygo?

A.J.

If the States have always been encouraging new Enterprise,try telling that to those who have tried to get'change of use'on a property for some new scheme, and see what they say.Somewhere, Fred is still waiting for his shed.

Janney C

Back to the story then! I have a few thousand in a fixed term deposit. only just re-invested! where shall i put it next? the interest form the co-op went down from 7% to its present almost 3, or was that 2? anyways. i cant pop in for a chat as live on AY. we only have lloyds, hsbc and natwest, all rubbish for saving. thanks in advance for helpful answers.

Beanjar

Do a bit of homework:

http://moneyfacts.co.uk/compare/offshore/search-results/

If rates eventually rise you might not want to be trapped in a 5 year/2.5% Bond but that is about the most you can get. Hope it helps.

Janney C

Thanks, Only invest 1-2 years at a time and didn't know there were so many banks and building societies here!