Alderson departed Co-op Bank in May

IT has emerged that Keith Alderson, the head of corporate and business banking at the crisis-hit Co-op Bank stepped down in May.

TheBusinessDesk.com understands his departure was part of a wider shake-up at the bank which led to the departure of a number of senior executives including chief executive Barry Tootell.

The move came as the bank announced it had stopped offering loans to new business customers as it sought to shore up its finances.

In March the bank reported an annual pre-tax loss of £673m and it was hit by a ratings downgrade to junk status by the Moody’s agency in May.

The Co-op Group then admitted there was a £1.5bn hole in the bank’s finances and management has spent the past six months planning a rescue deal. In the past weeks the institution has been rocked by the arrest of former chairman Paul Flowers over allegations he bought and used illegal drugs.

A spokesman confirmed Mr Alderson had left the bank but he could give no further detail on the circumstances around his departure or if he had taken a position elsewhere.

Following a reorganisation Mr Alderson’s old department, corporate and business banking, no longer exists. It has been replaced by business and commercial banking led by Richard France. This is now part of the bank’s “core” business along with retail banking. The “non-core” part of the bank includes a number of property loans, business loans over £25m, renewable energy asset finance and loans to housing associations.

Mr Alderson joined Co-operative Financial Services (CFS) in November 2003 as director of corporate banking and a member of the Co-op Bank’s executive team. He was appointed to lead business banking in 2010. Before joining the Co-op he had held senior regional roles at Royal Bank of Scotland and NatWest.