14-05-2025
Bank founded by Labour donor investigated after year of chaos
A spokesman for the Bank of London said: 'These accounts relate to a financial year in which the bank operated under entirely different leadership.'
Bank requires 'immediate additional capital'
Since last year's turmoil, the bank has secured £57m from its main investor, Mangrove Capital. It has also appointed a new board and chief executive, with Christopher Horne, a former Credit Suisse director, tasked with leading the business.
In its latest accounts, filed seven months late, the Bank of London reported it had fallen to a £12.4m loss in the year to December 2023. It also highlighted how it ran low on cash in early 2024, claiming the bank 'required immediate additional capital'.
Bosses have since launched a restructuring of the business, which has resulted in the departure of more than 100 staff.
Tensions over the Bank of London first emerged in September 2024 when it was hit with a winding-up petition from HMRC, one of the most serious actions a creditor can take.
The filing took the bank unawares, which insisted it resulted from a 'simple administrative handling delay'. The petition was later withdrawn.
Prior to his departure, the Bank of London had raised tens of millions of pounds under Mr Watson, a former Nike and Barclays executive. Mr Watson was also known for donating hundreds of thousands of pounds to Labour Party MPs, including Yvette Cooper, Peter Kyle and Wes Streeting.
The latest results also revealed that EY, the bank's auditor, warned of a 'material uncertainty' hanging over the company's ability to continue as a going concern.
It said it had uncovered that hundreds of thousands of pounds of revenue were wrongly accounted for, and flagged risks relating to the bank's financial controls. The bank also reported that 'inadequate record keeping' had left it unable to verify the accuracy of its share-based payments scheme, which was now being reviewed by the board.
A Bank of London spokesman said: 'Under new ownership and with new leadership – and having secured £57m of Mangrove Capital-led funding and with a commitment of a further £25m – the bank has embarked on a comprehensive transformation.
'This transformation has seen the bank's governance greatly strengthened with a reconstituted board designed for robust oversight and strategic leadership.'
Mr Watson was contacted for comment.
