Northern Rock financial scandal in Britain

This is a video from Britain about Northern Rock. ‘BBC footage of customers queing to get money’.

From British daily The Morning Star:

Kick them all out

(Thursday 15 November 2007)

A SCANDAL such as the shares sell-off by Enron bosses Jeffrey Skilling and Kenneth Lay in the US could never happen in Britain, we were expected to believe in 2001 when these White House-linked crooks wrecked the energy giant along with 21,000 jobs.

And yet there has been a similar lack of supervision of the affairs of Northern Rock, where chief executive Adam Applegarth was busy last year selling off his own shares while advising staff to build up their own shareholding.

He doubled up his share sale this year, again without informing Northern Rock staff, pulling in a total of £2.6 million.

This was before his reckless and, ultimately, disastrous exposure of the company to the erratic charms of the US subprime market plunged it into disaster.

Thursday’s attempt by the bank to justify Mr Applegarth’s behaviour simply emphasises the need for the entire board of directors to pack their bags without delay.

They sat back and waited for their dividends, bonuses and fees to roll in.

So both he and they must accept real responsibility for the situation that they have allowed to happen and pay the price.

But the rot goes more deeply into the fabric of Britain’s financial sector, posing questions to both the Bank of England and to the government.

Public money, amounting to over £25 billion, has been shovelled into the coffers of Northern Rock in a bid to maintain flagging confidence and to prevent a more extensive banking collapse.

It is not acceptable that the government should shelter behind the catch-all phrase of “commercial confidentiality” to refuse to confirm that the entire interest bill on the loan to Northern Rock will be paid back.

See also this animated cartoon.

Update 19 November 2007: here. 20 November 2007: here.

Update 28 November 2007: here.

New Labour financial scandal: here. And here.

Identity scandal in Britain: here.

1 thought on “Northern Rock financial scandal in Britain

  1. Pingback: More Northern Rock scandal in Britain | Dear Kitty. Some blog

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