Pensioners 'misled' by Co-op Bank

The Co-operative Bank reassured pensioners that their investments were safe a month before announcing plans to slash their savings as part of a last-ditch bail-out.

In emails seen by The Sunday Telegraph, a manager at the Co-op Bank told a worried pensioner that "there is no need to be concerned" about a £50,000 investment. The email was sent on May 13, just three days after the ratings agency Moody's downgraded the bank to "junk" . The following month, the Co-op suspended interest payments to pensioners and told savers they faced losses of at least 40% on their investments. The bank also said it had a £1.5bn capital shortfall. The pensioner wrote: "I am a member of the Co-operative Group and my wife and I ...