The Co-operative Group traces its history directly to the Rochdale Pioneers – recognised by the International Co-operative Alliance (ICA) as the birthplace of the co-operative movement. The Co‑operative Group is currently under threat from US hedge funds because its banking subsidiary – The Co-operative Bank – has been forced to plug a £1.5 billion ‘shortfall’ in its capital reserves. A few months ago, the Co-operative Group put forward a proposal to hold 70% of shares in a restructured bank, with the other 30% held by bondholders. Investors - led by New York hedge funds Silver Point and Aurelius Capital, taking advice from the investment bank Moelis – have rejected this proposal. Under a new proposal, outside investors will take a 70% stake and reduce the the Co-operative Group’s stake to 30%.