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| Version 0 | Version 1 |
|---|---|
| Northern Rock chief leaves firm | Northern Rock chief leaves firm |
| (about 2 hours later) | |
| Northern Rock has said that its chief executive Adam Applegarth has now left the company. | Northern Rock has said that its chief executive Adam Applegarth has now left the company. |
| Mr Applegarth announced in November that it was his intention to step down from his post at the troubled bank. | Mr Applegarth announced in November that it was his intention to step down from his post at the troubled bank. |
| He will be replaced as chief executive by Andy Kuipers, who has been reappointed as a director of the firm, subject to FSA approval. | He will be replaced as chief executive by Andy Kuipers, who has been reappointed as a director of the firm, subject to FSA approval. |
| Northern Rock's shares collapsed after it was forced to seek emergency funding from the Bank of England in September. | Northern Rock's shares collapsed after it was forced to seek emergency funding from the Bank of England in September. |
| Customers rushed to withdraw their money, and the bank has since been seeking bidders to rescue it. | |
| 'Right person' | 'Right person' |
| Mr Applegarth has been heavily criticised for the bank's problems. | Mr Applegarth has been heavily criticised for the bank's problems. |
| Northern Rock chairman Bryan Sanderson said: "I am delighted that Andy has rejoined the Board as chief executive. | Northern Rock chairman Bryan Sanderson said: "I am delighted that Andy has rejoined the Board as chief executive. |
| "I am confident that he is the right person to help manage the company through the strategic review process." | "I am confident that he is the right person to help manage the company through the strategic review process." |
| Mr Applegarth said that it was time for him to hand over to new management. | Mr Applegarth said that it was time for him to hand over to new management. |
| The departure of Mr Applegarth comes after Matt Ridley stepped down as chairman of the bank in October and was replaced by Mr Sanderson. | |
| Both Mr Ridley and Mr Applegarth were strongly criticised by the House of Commons Treasury Select Committee in October over the bank's business model that prompted it to ask for emergency funding from the Bank of England on 13 September. | |
| Nationalisation? | |
| It remains unclear what will happen to Northern Rock, which has been in talks with various potential bidders. | |
| Among those considering buying the troubled lender include Sir Richard Branson's Virgin Group, which has been named the preferred bidder. | |
| The Olivant group, led by former Abbey boss Luqman Arnold, has also been named as a contender. | |
| The Liberal Democrats have argued that the bank should be nationalised temporarily, saying plans to sell the bank will not work. | |
| Shares in the firm were down 4% in mid-morning trade at 95p. |