Co-op Bank loses customers after ex-chairman scandal

Britain's Co-operative Bank (CPBB.L) said it has lost current account customers as a result of a scandal involving its former chairman and a scheme that makes it easier for people to switch bank accounts. British police last week arrested the former Co-op Bank chairman Paul Flowers as part of an investigation into the supply of illegal drugs. Finance minister George Osborne has ordered an inquiry into the bank, just as its mutually owned parent attempts to push through a rescue plan that passes control of the lender to a group of hedge funds. Co-op Bank said its recent troubles, competition from other banks and the introduction of seven-day account switching may have contributed "to an increase the bank has seen in the switching out of current accounts."

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