LONDON, May 27 (Reuters) - Britain's Co-operative Group has named former HSBC banker Niall Booker asthe man to steer its banking arm back to health after concernsover its capital position emerged this month.
Booker replaces Barry Tootell, who stepped down as chiefexecutive of the Co-operative Bank this month afterits debt rating was cut to junk status by Moody's over concernabout a capital shortfall that analysts suggested could be ashigh as 1.8 billion pounds ($2.7 billion).
The bank, part of the wider group that includessupermarkets, funeral services and pharmacies, is in talks withBritain's financial regulator to agree on a plan to address theshortfall.
The group's new chief executive Euan Sutherland is expectedto update the Co-op board on the talks at a meeting on Friday.
"The board and I are confident that Niall will addtremendous value, helping us work through the complex issuesthat we currently face as we work to reposition our bank,"Sutherland said in a statement on Monday.
The bank, one of Britain's smaller lenders with 6.5 millioncustomers and a 1.5 percent share of the current account market,said last week that it had stopped lending to new corporateclients..
"There are no quick fixes here, but with the support of TheCo-operative Group, our staff and our loyal customer base, I amconfident we will be able to stabilise and develop thefranchise," Booker said on Monday.
The 54-year-old, who stepped down as head of HSBC's NorthAmerica business in 2011 after 30 years with the bank, has alsobeen appointed deputy chief executive of The Co-operative Groupand will start on June 10.