Booker joins from HSBC, where he was most recently chief executive and group managing director of HSBC North America. He has also been appointed as deputy chief executive of the wider Co-operative Group.
He replaces Barry Tootell, who announced he was leaving his position on the same day the bank was downgraded to “junk” status by ratings agency Moody’s.
Tootell originally joined the bank to steer negotiations with Lloyds to acquire 630 of its branches.The deal collapsed amid liquidity concerns, which prompted Tootell’s decision to quit.
It has been suggested that the announcement of his departure was brought forward to detract from the revelation of the Moody’s downgrade.
Rod Bulmer acted as interim chief executive following Tootell’s departure in early May.
No quick fixes
Speaking of his appointment, Booker said: “Along with the rest of the Co-operative team I will be focused on the actions to strengthen our balance sheet and satisfactorily resolve our underlying issues, while at the same time continuing to serve our existing customers and build on The Co-operative Bank’s exceptional brand strength.
“There are no quick fixes here, but with the support of The Co-operative Group, our staff and our loyal customer base, I am confident we will be able to stabilise and develop the franchise.”
In March the bank reported a £647m loss for 2012. It ran into difficulties as a result of the acquisition of the Britannia Building Society which held millions of pounds worth of toxic commercial and home loans.
Some analysts believe that the bank has a capital short fall which could reach £1.8bn. On Friday it suspended all new business lending in order to protect capital.
More heads to roll?
The Independent on Sunday revealed Steve Humes, the Co-operative Group finance chief, has been forced to resign as a result of the on-going crisis. He had held the position since 2011, when he was promoted from a similar position within the food division, but had no experience in banking.
A spokesperson for the group confirmed chief executive Euan Sutherland was in the process of strengthening the senior management team and it is likely there will be more hires sooner rather than later.
