LONDON – Co-operative Group, the British mutual, has appointed a former Treasury minister to oversee a review of governance at its banking unit, whose former chairman resigned amid allegations of drug use.
Paul Myners, whose previous jobs include being chairman of The Guardian Media Group, will take on the newly created role of senior independent director.
The scandal emerged after the Mail on Sunday posted a video showing Paul Flowers, the former chair of Co-op’s banking unit, allegedly buying illegal drugs.
The bank has been troubled since its 2009 acquisition of the Britannia Building society. It had to plug a 1.5 billion-pound ($2.4 billion) black hole in its finances and agreed to a rescue plan that saw hedge funds take a huge share of bank operations.