The advisers hired to scout out buyers for the Co-operative Bank are still set to get paid £15m despite the lender ditching the sale in favour of more investment.
The top City advisers hired to find a buyer for the Co-operative Bank are in line for a £15m payday despite the struggling lender turning to its existing investors to bail it out.
Bank of America Merrill Lynch and UBS will get between £15m and £20m as a success fee, according to Sky News.
The figure will come out of the money that a group of the Co-op’s existing investors will put into the lender.
The lender was initially looking to sell due to being short of cash.
It had been struggling to meet its capital requirements due to high interest rates and “higher than anticipated transformation and conduct remediation costs”.
The lender had previously been courted by firms such as Santander, Virgin Money and Banco Sabadell, though both pulled out of sales talks.