Tuesday, October 16, 2007

Northern Rock's Directors Face Grilling

Top executives from Northern Rock are currently being grilled by MPs at the Treasury Select Committee. Chief executive Adam Applegarth, Chairman Matt Ridley, non-executive directors Sir Ian Gibson (who is also deputy chairman of Morrisons and chairman Trinity Media) and Sir Derek Wanless are are among those who are facing the committee.

Committee deputy chairman Michael Fallon kicked off the proceedings, setting the tone, with a cutting question as to whether the hapless directors actually "know what's happening at their own bank".

Seemingly the directors are employing the tactic of blaming "unexpected events". Maybe they should have taken Prime Minister Macmillan's comments many years ago, as to what knocks governments off course ("events dear boy"), to heart.

On being pressed by Fallon as to why no one has resigned, Ridley said that his resignation is there if the board wants it.

Well, what's stopping them accepting it?

It is going to be a long day for these hapless directors!

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