Northern Rock review rules out prosecutions
There is "insufficient" evidence to begin legal proceedings against ex-Northern Rock executives, a review at the bank has found.The lender also said that it had paid off over half of the government loan, as it winds down its mortgage book.Northern Rock's business plan, developed under former chief executive Adam Applegarth, depended heavily on raising money from other banks in order to grow and finance their debts.This contrasts with the more traditional building society model, which relies on customer savings deposits and mortgage repayments for revenue.The bank's business model left it exposed when the money markets froze last summer - resulting in its collapse.Speaking to the BBC, Northern Rock's current chief executive, Ron Sandler, said that the lender was returning to a surer financial footing after being taken into public hands.Mr Sandler said he was "pleased" with the amount of the £26 billion in loans that had been paid off so far, adding that the firm was "well ahead" in its repayments schedule.
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