Northern Rock Boss Quits as Fall Continues

$570M writedown posted; sale of troubled bank months away

By Jason Farago, Newser Staff

Posted Dec 13, 2007 7:54 AM CST

(Newser) – The CEO of collapsing British bank Northern Rock quit this morning without comment, reports the Financial Times. Adam Applegarth resigned last month but had pledged to stay on as CEO until the end of January to guide the struggling company through its upcoming sale. But investors are troubled by the slow speed of the transaction, with Applegarth taking the blame.

Virgin Group remains the leading bidder for Northern Rock, which also announced yet another writedown today, this time a loss of more than $570 million. Northern Rock is now hoping to sell by the end of February. Gordon Brown again yesterday faced calls to nationalize the failing bank, with one pol saying Virgin CEO Richard Branson was not a "fit and proper person" to run a bank.

A branch of British bank Northern Rock PLC is seen in Croydon, south London, in this Friday, Sept. 14, 2007 file photo. The failing bank's CEO stepped down this morning. (Associated Press)

Customers line up outside a branch of British bank Northern Rock PLC in Croydon, south London, in this Friday, Sept. 14, 2007 file photo. The failing bank's CEO stepped down this morning. (Associated Press)

Britain's Treasury chief Alistair Darling delivers his speech during the Labour Party conference in Bournemouth, south England, Sunday Sept. 23, 2007. (Associated Press)

Billionaire Richard Branson, second left, dressed as an Indian groom wearing a traditional turban, as he arrives for a press conference of FM radio channel Fever 104 FM, which is a collaboration between... (Associated Press)

« Prev« Prev | Next »Next » Slideshow

To report an error on this story, notify our editors.

More Newser Stories

Northern Rock Bailout Plan a Money Shuffle

Deal pays back government loans, but public still on the hook

(NEWSER) - The British government today unveiled its last-gasp plan to hand off the Northern Rock hot potato and prevent nationalization, the London Times reports. Under the plan, the bank would immediately pay back the £25 billion it owes the government by selling the debt to private investors as bonds. But since the government is backing the bonds, taxpayers are still on the hook if the Rock defaults. More»

UK Nationalizes Northern Rock

Bank takeover marks desperate move for British ministers

(NEWSER) - British ministers plan to nationalize Northern Rock as part of a bold, desperate move to rescue the struggling bank, the BBC reports. Chancellor of the Exchequer Alistair Darling said two private bids to take over Northern Rock failed to offer “sufficient value for money to the taxpayer,” adding that London would only hold onto the bank until market conditions improve. More»

Brits Hatch Secret Plan to Bail Out Northern Rock

No good options for struggling bank

(NEWSER) - Worried that the state might be stuck nationalizing Northern Rock, Britain has worked up a contingency plan behind closed doors to divide the troubled bank among the country’s commercial banks. A private buyout is still preferable, the Guardian reports, but some now fear the main bidders will back out, leaving the government holding the bag. More»

Branson's Next Launch: Virgin Internet Bank

Exploiting the public's discontent with banks, Virgin could bid for Northern Rock

(NEWSER) - Capitalizing on public disgust with Britain’s big banks, Richard Branson plans to launch an Internet bank through subsidiary Virgin Money that will take deposits and offer mortgages, the Guardian reports. Branson is talking to investors and some US banks about financial backing and could set in motion more ambitious plans to acquire Northern Rock if the government decides to sell part of it back to the public before 2010 elections. More»

UK Buys Up Bank Shares in Radical Bailout

Cost of drastic rescue package could top $800B

(NEWSER) - The British government will become part owner of the nation's biggest banks with a mammoth $88-billion rescue package for the troubled institutions, the Wall Street Journal reports. Under the plan, swiftly assembled after UK bank stocks plummeted in trading yesterday, the government will purchase non-voting shares in eight of the largest banks as a way to provide extra capital to the institutions. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

Northern Rock Boss Quits as Fall Continues

$570M writedown posted; sale of troubled bank months away

OTHER STORIES ON OUR RADAR

Richard Branson • United Kingdom • Gordon Brown • credit crisis • Northern Rock • Virgin Group • Adam Applegarth

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Northern Rock Bailout Plan a Money Shuffle

Deal pays back government loans, but public still on the hook

UK Nationalizes Northern Rock

Bank takeover marks desperate move for British ministers

Brits Hatch Secret Plan to Bail Out Northern Rock

No good options for struggling bank

Branson's Next Launch: Virgin Internet Bank

Exploiting the public's discontent with banks, Virgin could bid for Northern Rock

UK Buys Up Bank Shares in Radical Bailout

Cost of drastic rescue package could top $800B

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?

Northern Rock Boss Quits as Fall Continues

$570M writedown posted; sale of troubled bank months away

Bookmark & Share

OTHER STORIES ON OUR RADAR

Richard Branson • United Kingdom • Gordon Brown • credit crisis • Northern Rock • Virgin Group • Adam Applegarth

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Northern Rock Bailout Plan a Money Shuffle

Deal pays back government loans, but public still on the hook

UK Nationalizes Northern Rock

Bank takeover marks desperate move for British ministers

Brits Hatch Secret Plan to Bail Out Northern Rock

No good options for struggling bank

Branson's Next Launch: Virgin Internet Bank

Exploiting the public's discontent with banks, Virgin could bid for Northern Rock

UK Buys Up Bank Shares in Radical Bailout

Cost of drastic rescue package could top $800B

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?