The investigation is concerned with matters relating to the period before the company entered public ownership.
In a statement released today, Northern Rock adds: “The Company is not subject to any sanction from the FSA as a result of this investigation.”
Northern Rock has confirmed that Hugh Graham, head of the company’s treasury operation, has been appointed as its interim chief financial officer, subject to FSA approval.
Last week, former deputy chief executive David Baker and ex-managing credit director Richard Barclay were fined £504,000 and £140,000 respectively for misreporting mortgage arrears figures.
Despite becoming aware in January 2007 that there were 1,917 loans omitted from the mortgage arrears figures, Baker’s actions meant this was not reported.
If the omitted loans were reported, the arrears figures would have been around 50 per cent higher. If the loans had been reported as in possession, the number would have increased from 662 to 2,579 cases.