http://www.theguardian.com/business/2013/nov/23/coop-scandal-paul-flowers-mutual-societies?INTCMP=ILCNETTXT3487
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The Co-op scandal: drugs, sex, religion … and the humiliation of a movement
Revelations about the behaviour of former Co-op Bank chairman Paul Flowers are very bad news not just for the Methodist minister, but for mutual societies in general – as well as Labour
Two and a half years ago, on a crisp spring afternoon in Glasgow, the Reverend Paul Flowers, chairman of the Co-operative Bank, was having a jolly time of it. After he'd enjoyed the hospitality of the directors' box at Glasgow's Hampden stadium, Flowers' broad features gave away his immense personal satisfaction at the cacophony of noise that greeted his handing over of the Co-operative Insurance Cup to Rangers captain David Weir. He even offered a small cheer. It was, a rueful Labour MP admitted last week, rather typical of the flamboyant, 63-year-old Flowers. "He loved the limelight and I suppose, well, people just thought: that's Paul."
That slight unease, sometimes made audible at Co-op meetings in the form of a nervous laugh at the chairman's latest extravagance, or a gentle tut-tut at his florid language and overbearing nature, has metamorphosed into a veritable roar of outrage in the past week.
On 13 November an acquaintance of Flowers phoned the news desk of the Mail on Sunday offering a trove of information on the Methodist minister-turned-councillor-turned-banker. Four days later the paper published, under the eye-grabbing headline "Crystal Meth Shame of Bank Chief", three pages of allegations, including incriminating text messages and video footage, reporting on purchases of Class A substances ranging from cocaine to ketamine and his hopes for a "drug-fuelled gay orgy".
Revelations about the behaviour of former Co-op Bank chairman Paul Flowers are very bad news not just for the Methodist minister, but for mutual societies in general – as well as Labour
Two and a half years ago, on a crisp spring afternoon in Glasgow, the Reverend Paul Flowers, chairman of the Co-operative Bank, was having a jolly time of it. After he'd enjoyed the hospitality of the directors' box at Glasgow's Hampden stadium, Flowers' broad features gave away his immense personal satisfaction at the cacophony of noise that greeted his handing over of the Co-operative Insurance Cup to Rangers captain David Weir. He even offered a small cheer. It was, a rueful Labour MP admitted last week, rather typical of the flamboyant, 63-year-old Flowers. "He loved the limelight and I suppose, well, people just thought: that's Paul."
That slight unease, sometimes made audible at Co-op meetings in the form of a nervous laugh at the chairman's latest extravagance, or a gentle tut-tut at his florid language and overbearing nature, has metamorphosed into a veritable roar of outrage in the past week.
On 13 November an acquaintance of Flowers phoned the news desk of the Mail on Sunday offering a trove of information on the Methodist minister-turned-councillor-turned-banker. Four days later the paper published, under the eye-grabbing headline "Crystal Meth Shame of Bank Chief", three pages of allegations, including incriminating text messages and video footage, reporting on purchases of Class A substances ranging from cocaine to ketamine and his hopes for a "drug-fuelled gay orgy".
The state of the bank at the moment is 5 million customers, a balance sheet of £40 billion and enormous losses still to be realised from their takeover of Britannia building society. The Bank of England will probably do all it can to save them from collapse but with them being a major contributor to the Labour party the Conservatives might throw a spanner in the works.
Stay tuned for more scandals, writedowns, losses and bank runs
