Will Co-op customers fall out with a newly-listed bank? 'Ripping off pensioners' is scarcely the type of comment that Britain's leading ethical bank wants to see beside its name. And yet the Co-operative - caught between the devil and the deep blue sea - will find increasingly that not all publicity is good publicity after it decided on a policy that will make many people very angry. The bank became the spiritual financial home for those who valued customer experience and moral values over high interest rates. Its current account holders - of which I am one - are some of the most loyal around. However, the bank has got itself into financial trouble, biting off more than it could chew by buying a building society called Britannia. Call it incompetence, poor judgment or lazy due diligence as you will, Britannia was a far worse deal than it looked on the surface. Who will suffer as the Co-op restructures? On the surface only those who hold PIBS will see their finances adversely affected. PIBS is a snappy name for a permanent interest-bearing share - the mutual's equivalent of a listed stock. These PIBS are confusingly enough, also known as bonds (though they have nothing do to with the fixed-rate savings bonds which are simply bank savings accounts bought through Co-op branches) PIBS, which are bought through a stockbroker, are popular with pensioners who want a steady income, and these pensioners are going to suffer. Like other bondholders, they don't face a total loss, but they will stop being paid the income that they are relying on from the bonds, which the Co-op plans will be swapped for a mixture of new bonds and shares. These pensioners are the direct losers. But I would argue that we all are. The Co-op bailout turns the bank from an institution owned by its members to yet another bank listed on the stock market. There is bound to be a clash of interests here. Why would the owners, for example, want to keep jobs in the UK when overseas call centres are cheaper and the value of their investments depends upon cutting costs? And who will decide the worth of the charity donations that the bank makes, or its pledge not to invest in certain sectors? And yet, once the Co-op loses its feelgood shine, who is going to want to bank with it? I certainly don't hold my current account with the Co-op because of the rate I am getting. The interest on my current account is non-existent, and it is rare that the bank tops the best-buy tables. This clash of cultures between jungle law and moral high ground leaves the Co-op in a very sticky place indeed. Retaining its Unique Selling Point may prove nigh-on impossible. Please send your questions about Co-op Pibs to money@telegraph.co.uk Read more on the impact for Pibs in our weekly money newsletter