Northen Rock chairman Matt Ridley has stepped down to be replaced by former chairman of BUPA and Standard Chartered Bryan Sanderson.
Ridley’s resignation comes after he was grilled by a parliamentary committee with other senior management over the collapse of the bank.
He offered to resign in September but was asked to remain in order to give his testimony before the committee. Sanderson will take over subject to FSA approval.
However, Ridley's resignation has come too late for some including Liberal Democrat Acting Leader and Shadow Chancellor, Vince Cable.
He says: “The Government should have made Mr Ridley’s departure a condition of its loan, rather than waiting for him to go.
“Furthermore there are other directors, including Derek Wanless, who are equally culpable. All of the senior management of the company led by Mr Applegarth should have been cleared out on day one.
“I nonetheless welcome this step as belated recognition that somebody in Northern Rock should be held accountable for its failures and for the exposure of public money which is now at risk.”
It was revealed today Northern Rock took a further £3bn from the Bank of England this month, taking the total amount of emrgency funding to £16bn.IFAonline
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