Third Northern Rock Director Ban
Published / Last Updated on 27/07/2010
Third Northern Rock Director Ban
by Ashley Clark, Director
Northern Rock’s former directors, former deputy chief executive David Baker, former finance director David Jones former credit director Richard Barclay, have all been banned and fined by the finance industry Financial Services Authority (FSA) for their part in the misreporting of mortgage arrears in the Northern Rock 2006 accounts.
The fines range on the three total nearly £1m now. Baker and Barclay fined £650,000 in April and now Jones £320,000 this month.
Northern Rock directors were fined after it was found by the FSA that staff were pressured into under reporting mortgage arrears cases by up to 50% and that the directors had therefore deliberately mis-reported Northern Rocks own mortgage arrears and repossessions figures.
The former directors appear to complaining about the scale of fines imposed but given the scale of shareholder loss and government buy out of months into the billions, we suggest they may have got off lightly.
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