The Kelly Report on The Co-op

Sir Christopher Kelly has issued his report on the Co-op Bank.

In short, it should never have taken over the Britannia Building Society.

For why?

The merger “exacerbated” problems at both lenders.

The Telegraph quotes the report:

“Both organisation had problems. Bringing them together exacerbated those problems. It might have worked if the merged organisation had received first class leadership. Sadly it did not.

The banking group board failed in its oversight of the executive. The group board failed in its duty as a shareholder to provide effective stewardship of an important member assets. Collectively they badly let down the group’s members.”

Lousy governance and poor leadership are at the heart of many a corporate failure, as the Co-op so ably demonstrates.