The BBC reported yesterday that Northern Rock has said it will not take legal action for negligence against the executives in charge of the bank before its collapse.
A review by lawyers and accountants into the management led by chief executive Adam Applegarth found "insufficient grounds" to proceed. It also concluded the firm's auditors should also avoid any action.
Ron Sandler, the firm's non-executive chairman, said he was "pleased" with the progress but said the Rock was still "significantly loss-making" and that returning it to profit and back to private ownership was "some years away".
Mr Sandler said it was "too early to say" how the part-nationalisation of Royal Bank of Scotland, Lloyds TSB, and HBOS would change the UK's banking industry.
Having been brought in to run the bank after its nationalisation, Mr Sandler was replaced as chief executive by Gary Hoffman on 1 October.
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