A rescue plan for the Co-operative bank will see its parent company lose overall control of its banking arm as a result of a rescue deal.

Under the terms of the original deal, designed to plug a £1.5 billion hole in its balance sheet, the group would have retained a 70% stake in the bank, with the remaining 30% sold off.

However, the banks creditors, including US hedge funds, ejected this plan and the current plans will see the group maintain just 30% of its shares.