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Northern Rock executives fined by watchdog

Published on 13 Apr 2010 under category: legal

Two former Northern Rock executives have been fined by the financial services watchdog.

The Financial Services Authority (FSA) has fined two former executives of Northern Rock a total of £644,000, following an investigation into internal reporting activities.

Former deputy chief executive David Baker and the former managing credit director Richard Barclay was also banned from performing a role in the future.

Baker, who was in charge of the secured loans book, was found to have failed in maintaining good records.

In addition, his inaccurate reporting to stakeholders meant that the level of actual debt and risk was hidden.

Mr Barclay was accused of similarly failing to provide accurate information, despite being "directly responsible for the provision of accurate management information".

Margaret Cole, FSA director of enforcement and financial crime, said: "Baker and Barclay both failed to meet the standards we require of senior individuals within FSA-regulated firms.

"They both held senior positions of trust within the firm but they provided inaccurate information to the Northern Rock board and to the market."

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