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Northern Rock CFO steps down due to FSA investigation

Northern Rock has announced that its chief financial officer, David Jones, has left the company with immediate effect to concentrate on the ongoing FSA investigation.

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.

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. I think the phrase stepped down to try and avoid all the publicity when he is fined for financial cover ups

  2. Frankly Shankley 21st April 2010 at 3:27 pm

    When I worked at NR David Baker pressurised me to keep my thoughts on potential PPI misselling by the company to myself and be ‘more of a team player’. In my exit interview he also shouted at me: “don’t you ever try to lecture me about morality”.

    Is the word I’m searching for “schadenfraude”?!

  3. Richard Hammond 21st April 2010 at 3:56 pm

    Thats not actually a phrase, is it John?

  4. Yes i know but i am slighly word blind sometimes, especially when migraned…i.e. now, but i hope you know what i meant

  5. I agree with you John, take your name out of the arena and the publicity of further action or fine is reduced… “to concentrate on the investigation”.. err yes ok, whatever you say……

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