‘Rock’ the board
18/06/2008
Northern Rock’s new management is investigating whether there are grounds to take legal action against the bank’s former board
The Newcastle-based bank confirmed that it was working with law firm Freshfields to determine whether there is a case against the bank's previous directors.
Former chief executive Adam Applegarth was fiercely critisised for his role in the demise of Northern Rock last September. He left the firm with a £63,000 a month redundancy package.
A Northern Rock spokesperson says: "The board remains focused on taking Northern Rock forward but clearly it has a duty to consider other factors such as the conduct of previous directors.
"However, no conclusions have been reached in this respect. This is an ongoing investigation and as and when the investigation produces its results, we will know more about whether or not there is the basis of any action."
