Third Northern Rock director in arrears probe

A third Northern Rock director has become embroiled in the Financial Services Authority investigation into why the lender omitted almost 2,000 loans from its arrears figures.

David Jones, chief financial officer at Northern Rock, has left the lender to concentrate on the investigation.

Two other Northern Rock directors, David Baker and Richard Barclay, have already been fined a total of £644,000 after they failed to report that 1,917 loans had not been included in arrears figures.

A statement from Northern Rock has confirmed Jones’ departure.

It says: “This enables Jones to focus on an ongoing FSA investi-gation into matters relating to a period before the company entered public ownership.

“The company is not subject to any sanction from the FSA as a result of this investigation.”

Hugh Graham, head of treasury at Northern Rock, will be appointed interim chief financial officer subject to FSA approval.