This mornings Radio Five finance report carried a revealing interview with Bob Bennett, ex Finance Director with Northern Rock. Bennett left the bank in January 2007 as he had reached retirement age. Not a man to mince his words, he laid the blame for the fiasco squarely at the door of the Bank’s directors. Admittedly speaking with hindsight, Bennett attacked the decision to go to the Bank of England so quickly. In his view, they should have held out for 72 hours and looked for alternative funding. The decision to move so quickly was like waving the “liquidation” flag to the market, precipitating the run on funds and savings. The blame ultimately rests with Adam Applegarth, ex Chief Executive, a man who with out doubt fell asleep while on watch.
Go to Radio Five’s web site later today when you will be able to down load the interview on the stations “I-Player”.
Whilst 40% of Northern Rock staff will loose their jobs, Applegarth walked away with his finances intact. Shame on the man.