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Britain's Co-op loses CEO, takes ratings hit

Britain's Co-operative Bank said Friday that its chief executive has quit following an aborted deal to buy 632 new branches, as a ratings downgrade sparked fears it might need a government bailout. "Barry Tootell, CEO, The Co-operative Banking Group, has chosen to step down from the business and from the board of The Co-operative Bank plc," a statement said. Tootell was appointed in 2011 to lead the acquisition by Britain's largest consumer co-operative of 632 stores from the state-rescued Lloyds Banking Group.

N. Korea says jailed US citizen preached regime change

A Korean-American tour operator jailed in North Korea had smuggled in anti-Pyongyang materials and sought to establish a base to overthrow the regime, according to the North's Supreme Court. Detailing for the first time some of the charges against Kenneth Bae, who was sentenced to 15 years hard labour at the end of last month, a court spokesman painted him as a militant Christian evangelist.

Moody's downgrades U.K.'s Co-operative bank amid concerns about credit quality

LONDON - The Co-operative Bank on Friday sought to reassure its customers that it didn't need a government bailout after Moody's Investors Service downgraded the U.K. lender's debt ratings to "junk" status. Concerns about the bank's credit status had been rising since it pulled out of a deal to buy some 630 branches from another U.K. lender, Lloyds Bank.

Royal Bank of Scotland returns to profit in Q1

Royal Bank of Scotland returned to profit in the first quarter with net earnings of £393 million ($610 million, 467 million euros) after a hefty loss a year earlier, the state-rescued lender said Friday. RBS said its profit after tax for the January-March period compared with a net loss of £1.545 billion in the first quarter of 2012 -- when the value of the bank's outstanding debt had significantly increased. "These results show pleasing progress in delivering a strong and valuable RBS for all our stakeholders," the bank's chief executive Stephen Hester said in a statement.

British government holds off on media regulation, under pressure from newspapers

LONDON - British officials are holding off on plans for a state-backed media watchdog, the first sign that opposition from the newspaper industry is slowing down efforts to more closely regulate the country's scandal-tainted press. Prime Minister David Cameron's office said Friday it was temporarily delaying the presentation of its plan for a new, government-backed regulator to give officials more time to examine an alternative proposal being floated by Britain's newspaper industry.

British sniper faces retrial for owning Iraqi gun

A British special forces sniper was told Wednesday he will face a retrial after he was briefly jailed for possessing a gun given to him as a gift by Iraqi troops he helped to train. Sergeant Danny Nightingale, 38, a veteran of the conflicts in Afghanistan, Bosnia and Northern Ireland, was sentenced to 18 months in military detention last November but freed three weeks later when judges suspended his sentence.

Finest Hour: Wartime leader Winston Churchill's portrait to be on British 5-pound note

LONDON - Here's a choice not likely to be too controversial: officials say wartime Prime Minister Winston Churchill's portrait will be featured on a new 5-pound note. Bank of England Governor Mervyn King made the announced Friday at Chartwell, Churchill's former home, surrounded by members of the late leader's family. King called Churchill "a truly great British leader, orator and writer." The bank says the note is likely to be issued in 2016. It will be based on a famous portrait photographed by Yousuf Karsh in Ottawa in 1941.

Campaigners protest British drone strikes in Afghanistan

Anti-war campaigners opposed to Britain's use of armed drones in Afghanistan on Saturday marched on a military base that this week began hosting the aircraft's human operators for the first time. Royal Air Force (RAF) pilots had been operating Reaper aircraft to support British troops fighting the Taliban in Afghanistan remotely from a base in Nevada in the United States. But this week the operations were relocated to Britain for the first time, to RAF Waddington in Lincolnshire in eastern England, the Ministry of Defence said.

Britain to honour Winston Churchill on new banknote

LONDON (Reuters) - Britain is set to honour its revered wartime leader Winston Churchill with a banknote featuring his portrait and famous declaration "I have nothing to offer but blood, toil, tears and sweat". The governor of the Bank of England, Mervyn King, travelled to Churchill's former home Chartwell in Kent, southern England on Friday to announce plans for Churchill's image to appear on a new five-pound note to be issued in 2016.

Lloyds bank reveals collapse of deal to sell branches

Britain's part-nationalised Lloyds Banking Group on Wednesday said a deal agreed last year to sell 632 branches at a loss to The Co-operative Group had collapsed, adding that it would now float the so-called Project Verde division on the stock market.
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