With the City of London’s Financial Services Authority (“FSA”) apparently having had reservations in the first place about the deal, CEO Peter Marks of the Co-operative Group resigned this Tuesday in a move that has shocked all those familiar with the circumstances, as the Co-operative Group was just about to buy 632 bank branches from part state controlled Lloyds Banking Group. What makes it more suspicious is that the FSA, who is expected to be informed of such critical events found out the same day everyone else did – today, bringing new questions to the current deal that’s currently undergoing involving Lloyds.

The FSA has declined to comment, but it must approve the deal before completion. It has indicated to sources that it is reserving the right to cancel the deal, which was below the amount of capital Lloyds wished to raise, as well as require the bank to underwrite some of the Co-operative Group’s debt. It was hoped that the deal would bring fresh capital to Lloyds and provide a growth opportunity for the cooperative group, but something obviously stinks.

Story is HERE.

At a certain point you have to wonder if the mainstream media even cares about telling you a believable story at this rate – the financial headlines reads more like a tabloid section of a supermarket news stand these days, and who knows the exact reason behind this rather interesting tidbit of a headline – did the deal stink so badly the CEO cut to save his own tail? Was he forced out for some reason? Who knows.

Markets aren’t working some days in some countries, market makers have flash crashes, Europe is in an endless circle of trying to bail itself out of quicksand and America continues it’s decline into rampant stagflation while the banks are roiled in scandal. Who has the tinfoil hat?