Former Co-op Bank deputy chair quit over Project Verde

RODNEY Baker-Bates, the former deputy chairman of the Co-operative Bank, told MPs he quit in protest at the plan to take control of 631 Lloyds branches.

The £750m deal, known as Project Verde, collapsed shortly before the bank admitted it needed a £1.5bn rescue.

Appearing before a Treasury Select Committee which is looking into the failed deal, Mr Baker-Bates said he resigned after concluding the planned acquisition was a “giant step too far”.

He said: “I wished to resign because of my opposition to Verde.”

Meanwhile, another deputy chairman, David Davies, who also opposed the deal but stayed on the board, said he was convinced more and more directors “saw the folly” of the deal as time went on.

Mr Baker-Bates, ex-chairman of Britannia Building Society, was a candidate for the role of chairman at the same time as Paul Flowers, who is now facing allegations of buying illegal drugs.

Mr Baker-Bates said there was not much discussion about banking experience and no references were asked for. However, there were psychometric tests, and he was told afterwards that Mr Flowers had been picked because he had performed well in this assessment.