According to a report in The Guardian on line (http://bit.ly/9194cm) the former finance director of Northern Rock, David Jones, today hit out against the Financial Services Authority as he was handed a life-time ban and fined £320,000 for allowing the bank to report mortgage arrears figures that were lower than they should have been.
The FSA concluded that Jones lacked integrity after he agreed in mid-January 2007 to allow false mortgage arrears to appear in an explanatory text in the annual report. After Northern Rock was nationalised in February 2009 he remained with the bank in senior role and but left in April 2010 shortly after his close former colleague, David Baker, who had been deputy chief executive, was fined £504,000 and barred from working in the industry for misreporting the same arrears figures.
When the FSA published its sanctions against Baker it also fined Northern Rock's former managing credit director Richard Barclay £140,000 and gave him a less draconian ban by prohibited from performing any role with "significant influence" at a firm regulated by the watchdog.
Robin Ashby commented ; "As with Baker, the FSA has quite correctly taken a hard line, and I hope that others learn this lesson very well. The fine is severe, but the damage to his reputation is greater, and I hope that anyone seeking to pay him for his advice in the future notes the disasterous effect that his approach had when he was in a top position at Northern Rock."
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