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It will now review its existing banking operations, under a new chief executive who arrives on 1 May, and I am told that it could decide to withdraw from banking completely.
BBC: Will Co-Op pull out of banking?
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And, according to my sources, the FSA is broadly saying to the Co-Op that it has to decide whether its future is in banking or in supermarkets (although I am sure the FSA would deny putting it in such stark terms).
BBC: The threat to Co-op��s plan to be a bigger bank
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They are particularly dependent on selling to economies - that like the UK itself - became far too indebted during the boom years (and to labour the point, I am talking here about the aggregate of household, corporate, banking and government debt, not government debt alone).
BBC: Can Germany afford eurozone collapse?