Union calls for Northern Rock’s former management team to face investigation

Trade union Unite has called for the previous management team at Northern Rock to face investigation in the wake of a self-critical report into the crisis by the Financial Services Authority.

The City watchdog conceded that it did not adequately scrutinise the high-risk strategy adopted by Northern Rock’s management board.

Northern Rock subsequently suffered severe losses during the early stages of the credit crunch, and had to be bailed out and then nationalised by the government.

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Graham Goddard, Unite deputy general secretary, said: “The failures that resulted in the crisis at Northern Rock mean that some 2,000 jobs will be lost at the bank.

“Unite wants to see a full investigation into the events that lead to the troubles of the Newcastle-based bank. This enquiry must take a broad perspective of all those involved, including the previous management of the company. The hard-working staff at Northern Rock deserve to know what went wrong and that lessons will be learnt.”