Northern Rock confirmed today that its new bosses have launched an investigation into whether legal action can be taken against the now nationalised bank’s former board.
Executive chairman Ron Sandler has instructed the bank's lawyers, Freshfields, to review the previous board's conduct during its time presiding over Northern Rock and its near-collapse last autumn.
The investigation will look at whether there are grounds for action against bosses including previous chief executive Adam Applegarth.
Northern Rock's business strategy has come under fierce criticism for its aggressive lending targets and heavy reliance on wholesale money markets, which led to the group's funding crisis amid last summer's credit crunch.
But Mr Sandler told the
Financial Timeshe was "not looking back trying to apportion blame".
He added: "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."
PA