Northern Rock to be dismembered, sold?

As Chancellor of the Exchequer Alistair Darling visited Newcastle on what's probably a "softening up" visit to Northern Rock, Robin Ashby was asked to comment for Tyne Tees TV on the proposal to divide up the bank and flog off the ongoing profitable bits.

He stressed that there had always been value in the bank, and this plan proves that to be the case. This should be recognised in the compensation to be paid for the shares which were confiscated from us. The so-called "impaired assets" could well prove to be profitable in the long term if the Government doesn't panic for short term political reasons.

Applegarth and Apollo

Robin Ashby has been asked by the media for recation to the news in today's Times newspaper that Adam Applegarth, the Chief Executive of Northern Rock at the time of the crash, and architect of the bank's failed strategy, is to become a senior adviser to American private equity firm Apollo Management. It is suggested that he will not have to be approved by the Financial Services Authority as a fit and proper person, and that he will be advising on the acquisition of the dodgy, or "impaired", loans.

Robin commented:

"This is extraordinary. Mr Applegarth's judgement, and therefore Apollo's in taking him on, must be very much in question after the events of 2007.

"The mechanism for him doing the job can be seen as trying to get round FSA rules, which, if the case, is reprehensible.

"What are these people trying to achieve? The Government, Northern Rock, and their circus of highly paid advisers must have gone to the outermost edges of these dodgy deals, and must make that information available as part of any due diligence. If Applegarth has any insider knowledge that would help a buyer, I would have expected him to make that known to Northern Rock's team in return for his mega payoff.

"Some humility, and an apology to all those like our members who he has helped impoverish, wouldn't go amiss before he takes any new job."