Ridley quits Northern Rock
October 26, 2007
Following a period of turmoil and chaos the chairman of troubled bank, Northern Rock, has quit his £315,000 a year job, which he has held for the past three years.
Matt Ridley offered his resignation in September following the chaos that resulted from the bank asking for an emergency loan from the Bank of England. However, according to reports Ridley was asked to stay on a little longer in order to deal with interrogation from the Treasury Select Committee, which accused Ridley of “damaging the good name of British banking”.
Ridley explained that there was not way of predicting the trouble that was to engulf the bank, and he said: “We were subject to a completely unprecedented and unpredictable closure of the world credit markets.”
Mr Ridley was accused by MPs of clinging to office but he had actually been asked to stay on in order to answer questions from the Treasury relating to the Northern Rock chaos.
Another Northern Rock official stated: “He and the board now believe that the time is right to accept his resignation as a chairman and director of the company.” Bryan Sanderson, former chairman of Standard Chartered Bank and also of Bupa, is to take over as chairman of Northern Rock, but us still awaiting approval from the Financial Services Authority.
Reports have also revealed that Ridley will receive no golden handshake when he leaves Northern Rock, although many had assumed that he would receive a healthy payoff when he left. However, this is not the case and according to bank officials he will not be receiving any payout. Ridley has been with the bank since 1994, but has only been in post as chairman for three years.
Alan Wright
26th October 2007
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