FSA widens Northern Rock arrears probe

A third Northern Rock director is reportedly being investigated by the Financial Services Authority over his part in hiding almost 2,000 loans from the bank’s arrears figures.

The Sunday Times reports that David Jones, the former finance director at the nationalised bank, is believed to have been aware that 1,917 loans were omitted from arrears data but did not seek to correct earlier financial statements.

David Baker, former deputy chief executive of Northern Rock, and Richard Barclay, former managing credit director, have been fined a total of £644,000 for misreporting arrears by the FSA.

Baker has also been banned from performing any regulated activity, while Barclay has been banned from performing any significant influence function at an FSA-regulated firm.

A statement from Northern Rock says: “Northern Rock (Asset Management) takes matters of financial regulation extremely seriously and, following speculation, the company confirms that it continues to work with the FSA on an investigation relating to events that occurred prior to it entering public ownership.

“The investigation does not relate to the company itself.”