The U.K.'s HM Treasury launched a new independent review over the prudential supervision of Co-operative Bank Plc between 2008 and 2013.
The review will include the bank's withdrawal from the so-called Project Verde, the deal to buy 632 Lloyds Banking Group Plc branches in 2013, to "understand what lessons can be learned," according to a March 6 statement.
The review will also look at the actions, policies and approach of the Financial Conduct Authority and, eventually, the Prudential Regulation Authority as the agencies supervising the bank during the said period. It will also focus on the questions set out by the House of Commons' Treasury Committee in its 2014 report on Project Verde.
The move comes after the FCA ended the same day its enforcement investigation into the lender and related individuals, under which Paul Flowers, Co-op Bank's former chairman, was banned from the financial services industry.
Reuters reported the same-day that the PRA said it "supports" the review. The Treasury has appointed the PRA's Mark Zelmer to spearhead the inquiry.
