Britannia loans 'behind Co-op woes'

Press Association
Co-op bank
Co-op bank

A top City regulator has insisted the Britannia Building Society's risky loan book was and is a "key factor" in the Co-operative Bank's mounting woes.

Andrew Bailey, chief executive of the Prudential Regulation Authority, wrote to MPs to say a big part of a £1.5 billion black hole in the Co-op's balance sheet stems from the former building society's risky assets.