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5 Things You Should Know About Unity Trust, Labour's New Bank

5 Things You Should Know About Labour's New Bank
Asa Bennett
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Ed Miliband, right, the newly-elected leader of Britain's opposition Labour Party, his deputy Harriet Harman, center, and Ed Balls, left, shadow Education Secretary and an unsuccessful candidate in the Labour Party's 2010 leadership election, listen to a speaker at Labour party's annual conference, in Manchester, England, Wednesday Sept. 29, 2010. (AP Photo/Lefteris Pitarakis)
ASSOCIATED PRESS

Labour is reportedly keen to move its custom from the Co-Op Bank as their historic partnership was strained by the Co-Op's organizational chaos that saw it make eye-watering losses of over £1 billion.

The party's plan to move its £1.2m loan and current account from the Co-Op to the Unity Trust Bank has been seized upon by the Tories. Tory chairman Grant Shapps warned that the move "would hand the trade unions even more control over Ed Miliband and the Labour Party."

Are the Tories right? Here are 5 things you need to know about the Unity Trust Bank, who Labour are hoping could be a better bank than the troubled Co-Op are now turning out to be.

5 things you should know about Unity Trust Bank, Labour's successor to the Co-Op
The bank is trade-union owned (01 of05)
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Trade unions own 73% of the bank, with Unison general secretary Dave Prentis acting as its President. (credit:Unity Trust's Annual Report 2013 )
Trade unions are on the board(02 of05)
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Yes that includes Unite, so the Tories will get to warm up their attacks about Unite general secretary Len McCluskey's influence over the Labour Party. (credit:Unity Trust Website http://www.unity.co.uk/)
The Co-Op has offered its "expertise"(03 of05)
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Some may wonder what the "expertise" would be given the Co-Op's record-breaking losses this year. (credit:Unity Trust Website http://www.unity.co.uk/)
Does Labour have a 'social impact"? (04 of05)
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As the Unity Trust only lends to causes with "clear social impacts achievable".
Labour may leave the Co-Op for a bank run by the Co-Op(05 of05)
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Co-Op appoints the Unity Trust's chairman and has its managing director as well as its risk and financial control directors on the board. In short, Labour would be leaving the Co-Op for a bank that is currently controlled by the Co-Op. However it should soon change as after losing £1.3 billion, the Co-Op is set to cede control of the Unity Trust after putting its 27% stake up for sale.
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