Northern Rock’s return to the black in August seems counter-intuitive in that it’s the ’bad bank’ part of the business (Northern Rock Asset Management) with £50bn of so called dodgy debt which has made a profit of £350m while the ’good’ bank, Northern Rock plc, that’s made losses of £143m. It seems that the good bank isn’t lending enough to cover the interest payments to its savers so why, one wonders, has it been so competitive in the savings market?
As for the debt management side of the business, which is also taking over Bradford & Bingley’s more tricky loans, it’s worth recalling that the top dog there now is Steve Haggerty, formerly managing director of HML, Skipton Building Society and of third party servicer Crown Mortgage Management.
Last summer, while still at Crown, Haggerty told Lending Strategy that the government wasn’t doing the right thing by taxpayers, and should bring in the servicing community to sort out the failed lenders. Obviously someone at UKFI read the piece and took him at his word!