Northern Rock Exec Finally Stands Down

Troubled mortgage lender Northern Rock has today announced that Adam Applegarth, chief executive throughout the recent turmoils, has finally parted ways with the company after several months of work in preparing for the future of the crisis-stricken bank.

Having already attempted to resign back in November, Applegarth was begged to stay in position to see the bank through the months following its demise, in order to prepare for the impending takeover process and help work through the problems it continues to suffer.

Northern Rock was, until recently, a highly successful high street retail bank, lending to homeowners across the country. However its downfall was over exposure to the US sub-prime sector, and substantial investment in securitisation packages without cause for liquidity flow.

As a result the bank began to feel the pinch when the sub-prime house of cards collapsed, which left it with worthless assets and very little in the way of liquidity with which to support its lending and investment businesses.

Following that members of the public took to mass panic withdrawals, only serving to further hamper the liquidity situation at the bank, which was brought close to the brink of financial ruin but for the support of the Bank of England and the UK taxpayer.

It is thought that Applegarth is to be succeeded by former board member Andy Kuipers in the interim, although it is expected that a new chief executive will be appointed following the successful completion of any of the current takeover offers on the table.

Meanwhile Northern Rock continues to be the subject of media speculation as the race for its takeover hots up. It remains to be seen whether the once-strong bank can rebuild its reputation, and whether it can return to profitability over the coming few years under new ownership.

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