The stability of the financial system is more important than the losses faced by savers who invested money in the Co-operative Bank, regulators have declared. The Co-op has launched a raid on bondholders as part of a plan to raise £1.5billion to plug a black hole in its books – slashing the incomes of thousands of pensioners. The plan has the backing of the Bank of England and its Prudential Regulation Authority, which is responsible for making individual lenders safe. Andrew Bailey, deputy governor of the Bank and head of the PRA, told campaigners that how the company raises the money is up to its management. He also said that the Bank’s priority was the safety of the entire financial system rather than the losses faced by savers. ‘While we recognise the concerns of small investors who have seen the value of their investments reduce as a result of developments at the Co-operative Bank, the PRA has a general statutory objective to promote the safety and soundness of the firms we supervise......Read more here