Northern Rock bosses offer resignations

Northern Rock’s Chief Executive Adam Applegarth and Chairman Matt Ridley have offered to resign following the problems at the crisis-torn bank. However, the board said their futures should be determined when the crisis is over.

Sir Ian Gibson, senior independent director, said Mr Applegarth and Mr Ridley may not be around when the Government’s lending facility expires in February 2008. He revealed their resignations were being reviewed every week.

The board has confessed that its customers have lost faith as they were under scrutinisation by MPs on the Treasury Select Committee yesterday.

Mr Ridley admitted that the Bank of England had loaned almost £13 billion and confessed he may have to ask for yet more funding. Mr Ridley said the mortgage business could continue but its name was damaged for savers.

Mr Ridley said the crisis was unavoidable following the global credit crunch and added if Mr Gibson think it’s in the interests of the company then his resignation is available as soon as he thinks necessary.

Mr Applegarth explained to the Treasury Select Committee that he regretted the worry the crisis caused the bank’s customers.

Northern Rock confirmed earlier this week that it is working with “a number of potentially interested parties” on options for its future. The bank said that discussions were at an early stage and it is not divulging the number of bidders or their identity.

Discuss this in the Finance Markets forums

Story link: Northern Rock bosses offer resignations