Northern Rock to recruit extra debt collectors
Wednesday, June 18, 2008
Northern Rock, the nationalized UK lender, is to start recruiting again in spite of planning to shed 2,000 jobs - in order to enhance its debt collections.
Ron Sandler, executive chairman, said that he expected the bank to beef up its debt collecting staff to 440 people from around 170.
Northern Rock was one of the country's most aggressive mortgage lenders before disaster struck last year and it was forced to ask for an emergency loan from the Bank of England. After an abortive sale process, the bank was nationalized in February.
Mr. Sandler also said in an interview with the Financial Times, that he and Northern Rock's lawyers Fresh fields were currently conducting an investigation into the conduct of the previous board.
He wants to see whether potential legal action could be taken against executives including Adam Apple Garth, the former chief executive widely seen as the architect of the bank's failed strategy.
Mr. Sandler said: "I am not looking back trying to apportion blame . . . any correct board would look at the conduct of any previous board and seek to establish whether that previous board had discharged all of its duties.
"I have initiated an investigation and that is ongoing. As and when it produces its results I will know more about whether or not there is the basis of any action," he said.
Northern Rock has seen the number of its home loans that are behind by three months or more jump to 0.95 per cent of its mortgage book - almost double the figure of 0.57 per cent at the end of December.
The jump was partly due to the bank's decision to change the way it accounts for mortgages in arrears, but the figures have raised concerns that the bank's loan book is deteriorating more quickly than expected.
Source: http://www.ft.com/
