AFM comments on announcement that Co-op is preferred bidder for Lloyds’ branches
Commenting on the announcement that the Co-Op has been given preferred bidder status by Lloyds for the sale of their 632 branches, Martin Shaw, Chief Executive of the Association of Financial Mutuals, stated:
“I am delighted to hear that the Co-Op is the front runner to purchase the branches that Lloyds have been obliged to sell by the European Commission. The mutual business model has never been more relevant for financial services; after the disappointment over the failure to pursue the re-mutualisation of Northern Rock, this is a shot in the arm for the sector.
“The Government made a commitment to foster diversity in financial services through the promotion of mutuality and there has been little evidence of their commitment to this to date. However, this announcement by Lloyds puts the mutual business model in the spotlight as one that is stable, responsible and a perfectly viable alternative to shareholder organisations that don’t always have the interests of their customers at heart.”