NBNK launched in August with the aim of building itself into a substantial UK bank providing current accounts and savings products. Potential future acquisitions for NBNK at the time included either Northern Rock or the 600 branches the Lloyds Banking Group must dispose of by the end of 2013.
But under the terms of Hoffman’s release NBNK has committed not to make a bid for Northern Rock for a period of 12 months from November 1 2010.
Ron Sandler will revert from non-executive to executive chairman with immediate effect in order to provide continuity of leadership. Sandler was originally appointed as executive chairman of the former Northern Rock business when it entered public ownership in February 2008.
Sandler says: “The Board recognises the role Gary has played in the rehabilitation of Northern Rock and thanks him for his significant contribution. I will resume my role as executive chairman for the foreseeable future and, along with a strong Board and executive management team, provide the continuity of leadership in the bank at this important time. I am looking forward to returning to the role I had in 2008.”
Hoffman says: “We have achieved a great deal together at Northern Rock in the last couple of years in the best interests of tax payers. I have enjoyed my time with Northern Rock immensely. However, it is now time for me to take on a new challenge.”