Northern Rock finance boss banned by FSA

David Jones, the former Northern Rock finance director, has today been banned by the FSA from performing any function in relation to any regulatory activity in the UK. This comes after he was found guilty of misreporting mortgage arrears going back as far as 2007. It is believed that a number of repossessions were left out of the 2006 report and accounts which effectively gave the wrong impression and wrong data with regards to repossession numbers at Northern rock.

It is believed that had the correct data being introduced to the 2006 report accounts this would have shown a 50% increase in mortgage arrears and a 300% increase in repossessions. The former finance director was fined £320,000 joining former chief executive David Baker and credit director Richard Barclay who were between them fined a total of £650,000 for their part in misreporting financial data to the FSA.

Many people believed that the Northern Rock business model was floored but could not understand how the company appeared to be performing far better than competitors in the mortgage arena. However, when the credit crunch hit home and the money markets began to creak, the business model literally fell apart overnight.