Rock chiefs avoid charges following review

15/10/2008

No prosecutions will be launched against ex-bosses at Northern Rock.
A review from accountants and lawyers conducted at the bank, which was taken over by the government after collapsing last year, has found "insufficient" evidence to proceed.

Northern Rock's business plan has been criticised for leaving it particularly vulnerable to the credit crunch.

This is because, rather than using customer deposits to fund its business growth, it used loans from the money markets - leaving it unable to raise sufficient revenue when these markets froze at the beginning of the crisis.

The bank has also taken around £26 billion in loans from the government to remain operational and will not break even before 2011.

Speaking to the BBC, new Northern Rock chief executive Ron Sandler said that the firm was "well ahead" in its plans to repay its debts.

However, he conceded that the bank's existing break-even plan might be too ambitious, due to the continuing economic downturn.

Tags; Debt Management and Banking, Young Family Finances, Credit Card Lifestyle,

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