FSA Fines Former Northern Rock Chief of Finance
Director of Finance, David Jones received a large fine from the FSA on Tuesday for mis-reporting mortgage arrears figures.
The fine for Jones, the most high profile Northern Rock executive to be fired so far, stands at 320,000 pounds. He was also banned from performing any function in relation to any regulated activity. Earlier this year David Baker, former Northern Rock chief executive, and former managing director of credit, Richard Barclay were fined and banned. They also were held responsible for mis-reporting mortgage arrears and misleading investors. Baker was fined 504,000 and Barclay 140,000 respectively. Northern Rock, which gained notoriety as the fifth largest UK mortgage lender at its best, was the first major British casualty when credit started to get tight. The Northern Rock issues prompted immediate attention for how banks should be regulated. Several politicians labeled the FSA as being too soft during the credit crisis, so retribution was certainly a thought for them during the punishment period. Even though the FSA has since placed five people in jail during its tenure and assigned fines of over 30 million pounds the British Government still has plans of dissembling the body and handing powers back to the Bank of England.