Ex-Northern Rock chiefs fined and banned
Northern Rock’s former deputy chief executive and former managing credit director have been fined and banned by Britain’s financial regulator for misreporting statistics on home loans that were past due.
David Baker, the former deputy CEO of the bank that was nationalised in February 2008, and Richard Barclay, were fined a total of £644,000, the Financial Services Authority said in a statement today.
Baker didn’t tell analysts or the board about 1,917 loans that were in arrears, the FSA said. Had he done so, Northern Rock’s arrears figures would have increased by 50pc.
“They both held senior positions of trust within the firm but they provided inaccurate information to the Northern Rock board and to the market,” Margaret Cole, the FSA’s enforcement director, said in a statement.
“This is a loud and clear message that we are serious about taking action against senior directors where they step over the line.”
Baker and Barclay cooperated with the regulator and so qualified for a 30pc reduction of their fines. They couldn’t immediately be reached for comment.
The penalty against the men is the first time the FSA has taken major enforcement action against senior managers of lenders that were damaged as a result of the worst financial crisis since World War II.
Northern Rock, based in Newcastle, was the first British victim of the crisis.