Written evidence submitted by Northern
On 1 January 2010 Northern Rock successfully
completed a legal and capital restructure to create two separate
Northern Rock plca
new savings and mortgage bank that holds and services customer
savings accounts (currently £19 billion) and some mortgage
accounts (approximately £10 billion). The bank is authorised
as a deposit taker by the FSA and offers new savings and mortgage
Northern Rock (Asset Management)
plcthe existing company renamed, which holds the balance
of the existing residential mortgage book (around £50 billion).
This company is the borrower under the Government loan. It is
regulated by the FSA as a mortgage provider, not a deposit taker.
Therefore it has a lower regulatory capital requirement. It will
not offer any new mortgage lending.
The restructure has delivered a capital efficient
solution, in taxpayers' best interests.
Following a significant contraction
in the number of active participants and the volume of available
loans in the mortgage market over the last two years, the restructure
enables the new bank to increase its new mortgage lending, sustaining
competition in the UK and supporting mortgage market capacity.
Northern Rock has been operating
under self imposed competitive restrictions since 2008, and remains
committed to not taking unfair advantage of Government support.
Consequently some revised measures have been agreed with the European
Commission as part of the State Aid approval process.
Performance in 2009
Operational performance continues
to benefit from a strengthened Board and management, and a significantly
improved risk and control environment.
Northern Rock's financial performance
improved through 2009, reflecting higher net interest income,
good control of costs and impairment charges lower than forecast.
Northern Rock remains committed to
providing its people with a supportive and rewarding place to
For our customers, it is business
as usual and we remain committed to offering a high level of service
Existing terms and conditions remain
unchanged for mortgage customers in both Northern Rock plc and
Northern Rock (Asset Management) plc.
This restructure has been described
as the creation of a "good" bank and a "bad"
bank. This is inaccurate and potentially distressing to our customers.
The vast majority of the mortgages in Northern Rock (Asset Management),
the so called "bad bank", are not in arrears, with over
90% fully performing.
Our substantial debt management investment
programme has allowed more than 1,700 customers to remain in their
homes as a result of Northern Rock's innovative rescue solutions.
The number of properties in possession has fallen from over 4,000
at its peak to around 2,000 at the end of 2009.
Repossession remains a last resortboth
companies will continue to offer all customers access to debt
management facilities should they experience financial difficulty.
1.1 Northern Rock welcomes the opportunity to
provide an update to the Treasury Select Committee on its progress
during 2009. This memorandum covers the period since Northern
Rock's appearance in front of The Treasury Select Committee in
1.2 Northern Rock has continued to adopt a professional
and structured approach to the regular release of financial and
other business performance information in line with the Company's
commitments to accountability and transparency whilst in Temporary
Public Ownership. The material included here is based on information
which has already been released publicly.
1.3 In this written submission, Northern Rock
updates the Committee on the following areas:
Legal and Capital Restructure:
Background to the revision of the Company's strategy and key features
of the revised plan, including agreement to State Aid and overview
of new companies;
Northern Rock's Performance in
2009: Financial and Operational performance; and
Governance: Board and Executive
Structures of the new companies.
2. LEGAL AND
2.1 A key objective of the Company's original
business plan, announced in March 2008, was to repay the Government
loan, primarily through a programme of accelerated mortgage redemptions.
This was achieved by actively encouraging existing customers to
remortgage to other lenders. During 2008 this policy was very
effective and enabled the Company to reduce the Government loan
ahead of its plan.
2.2 The Company embarked on a review of its
strategy in the autumn of 2008 in response to the significant
deterioration in the external environment. The plan review specifically
set out to address the risk of higher capital requirements as
loan losses increased. The plan also addressed how Northern Rock
could support increased mortgage market capacity following a significant
contraction in mortgage market supply during 2008.
2.3 In February 2009, Northern Rock announced
that it had agreed a revised business plan with the Government.
The key features of the revised plan were:
slowing down the rate of mortgage
offering up to £14 billion of
new mortgage lending in 2009-10;
changing the repayment profile of
the Government loan to reflect the new mortgage lending and slower
implementing a legal and capital
restructure of the Company, designed to maximise value for the
taxpayer and facilitate the new mortgage lending.
2.4 Through 2009, the Company worked closely
with the Government and the Financial Services Authority (FSA)
in preparation for the legal and capital restructure, which is
core to its business plan. This included supporting the Government
in the submission of a revised State Aid application to the European
Commission (EC) as well as working with the FSA to demonstrate
the robustness of the Companies' future business plan.
2.5 In October 2009, the EC announced that it
had approved the Government's State Aid package for Northern Rock.
This enabled the plan to restructure the business to proceed.
2.6 The legal and capital restructure completed
on 1 January 2010, resulting in two separate companies.
Northern Rock plca
new savings and mortgage bank that holds and services approximately
£19 billion of customer savings accounts and approximately
£10 billion of mortgage accounts. The bank is authorised
as a deposit taker by the FSA and will offer new savings products.
It will also offer new mortgage lending to support the Government's
objective of increasing mortgage supply and sustaining a competitive
market. Northern Rock plc also holds some wholesale deposits.
Northern Rock (Asset Management)
plcthe existing Company renamed which holds approximately
£50 billion of residential mortgages and a portfolio of personal
unsecured loan accounts of around £4.5 billion. It is regulated
by the FSA as a mortgage provider, not a deposit taking bank.
This enables the Company to hold a lower amount of capital than
would otherwise have been the case. 90% of the mortgages held
by Northern Rock (Asset Management) plc are fully performing and
are not in arrears. This company cannot, therefore, be accurately
described as a "bad" bank. The portfolio includes the
company's interest in those mortgages allocated to the Granite
securitisation and covered bond programmes. It will not offer
any new mortgage lending.
Northern Rock (Asset Management) plc remains
the borrower in respect of the Government loan and Northern Rock's
existing outstanding wholesale funding and subordinated debt.
2.7 Both companies remain in Government ownership
following completion of the restructure.
They are well capitalised, and have sufficient
liquidity to fulfil their anticipated obligations.
2.8 Following the legal and capital restructure,
all staff are employed by the new company, Northern Rock plc,
who will provide administrative and other services to Northern
Rock (Asset Management) plc under service level agreements which
will be monitored by the independent Executive and Board structures
of each entity. Options for full separation will be evaluated
and implemented throughout the course of 2010.
CompetitionSupporting the Mortgage Market
2.9 There has been a significant contraction
in both the volume of available mortgages and the number of active
market participants as a result of the financial crisis. The Government
loan increased by approximately £8 billion to £23 billion
on completion of the restructure. This allowed additional cash
resources to be provided by Northern Rock (Asset Management) plc
to Northern Rock plc in connection with the transfer of its deposit
liabilities to the new bank. This will enable Northern Rock plc
to continue to increase mortgage lending, supporting mortgage
market capacity in a time of constrained market competition.
2.10 Northern Rock has always been mindful of
the need to avoid competitive distortion while in receipt of State
Aid. As a result the existing company has operated under self-imposed
restrictions in the form of a Competitive Framework since early
2008. The Government has offered a number of compensatory measures,
which have been agreed with the EC in order to continue to avoid
competitive distortion in the market.
2.11 These measures have replaced the existing
Competitive Framework commitments following the restructure. The
measures that Northern Rock plc and Northern Rock (Asset Management)
plc have implemented as part of the restructuring include:
Northern Rock plc will limit new
lending volumes to £4 billion in 2009, £9 billion in
2010 and £8 billion in 2011.
Northern Rock plc will maintain retail
deposit balances across the UK, Ireland and Guernsey at or below
£20 billion until the end of 2011.
Northern Rock plc will not rank in
the top three of Moneyfacts mortgage categories for two, three
or five year fixed or variable mortgages before the end of 2011
(excluding mortgages with a Loan-To-Value (LTV) ratio of greater
than 80% and products for first time buyers).
Northern Rock (Asset Management)
plc will continue to hold all existing subordinated debt and,
where it is contractually able, will not pay principal or coupons
on these instruments while it is in receipt of State Aid.
2.12 As a UK bank, the amount of capital (or
money) we are required to maintain is governed by the FSA. If
Northern Rock had remained as it was, we would be required to
hold a significant amount of additional capital to meet the FSA's
2.13 By restructuring into two companies, the
total amount of capital required will be within the £3 billion
level previously agreed by the Governmentessentially because
Northern Rock (Asset Management) plc will not hold any retail
deposits and will be regulated with a lower regulatory capital
requirement than a deposit taking bank.
2.14 At the Transfer Date, HM Treasury holds
(through its nominee) the paid up share capital of the new bank,
Northern Rock plc, of £1.4 billion (1.4 billion ordinary
shares of £1 each).
2.15 HM Treasury has also committed to ensure
that Northern Rock (Asset Management) plc meets its regulatory
capital requirements by undertaking to provide additional regulatory
capital of up to £1.6 billion, but only if such capital is
2.16 Northern Rock plc and Northern Rock (Asset
Management) plc are both in receipt of State Aid following the
restructure. The EC has approved the aid package following an
extensive and rigorous review process under European State Aid
2.17 For Northern Rock customers it is business
as usual and they need take no action following completion of
the restructure. We are in the process of writing to all our customers
to keep them informed of progress.
2.18 A significant proportion, around £50
billion of mortgage customers, remain with the existing company,
now called Northern Rock (Asset Management) plc. The portfolio
includes the Company's residual interest in those mortgages which
have been sold to the Granite securitisation programme and the
Northern Rock covered bond programme (totalling approximately
2.19 The restructure has been likened by some
to the creation of a "good bank" (Northern Rock plc)
and a "bad bank" (Northern Rock (Asset Management) plc).
90% of the mortgages held by Northern Rock (Asset Management)
are fully performing and are not in arrears, and this company
would not, therefore, be accurately described as a "bad"
bank. This term is not only inaccurate but more importantly could
be distressing to our customers and detrimental to other stakeholders
of Northern Rock. This is something we are keen to avoid.
2.20 While Northern Rock (Asset Management)
plc will no longer undertake new lending, customers will be able
to continue operating their mortgages as they do now. This means
that they should continue to make payments in the normal way and
will be able to utilise flexible features (for example, redrawing
previous overpayments) as before.
2.21 They will also be allowed to port their
mortgage to a new property subject to the usual underwriting criteria
and repay their mortgage over the unexpired term of the product.
Should they wish to move their mortgage to another provider they
will be able to do so. Existing terms and conditions will remain
unchanged for mortgage customers in both Northern Rock plc and
Northern Rock (Asset Management) plc.
2.22 Our primary concern remains the fair treatment
of all customers at all times and in all circumstances.
2.23 The Government guarantee of retail savings
transferred to Northern Rock plc remains in place. Given the Company's
good progress and the new bank's strong capital and liquidity
position, release of the guarantee is being reviewed by HM Treasury
and the FSA.
2.24 Any decision to release the guarantee is
subject to a minimum three-month notice period. Fixed rate bonds
will retain the guarantee for the existing term of the product.
In the event that the Government guarantee is lifted, Northern
Rock UK savings customers will benefit from the cover provided
by the Financial Services Compensation Scheme.
2.25 Guarantee removal would be a positive sign
of market normalisation as well as being an important step in
the rehabilitation of Northern Rock
3. NORTHERN ROCK'S
3.1 Northern Rock has committed to provide regular
and transparent reporting. Northern Rock releases detailed financial
statements for the half year and full year, supported by quarterly
trading statements. The information included below relates to
the financial performance of the company prior to completion of
the legal and capital restructure, now known as Northern Rock
(Asset Management) plc.
3.2 Northern Rock has demonstrated consistent
improvement in its financial performance during 2009. Although
it has remained loss making, this improvement has been driven
by higher net interest income, tight control of costs and by a
better than expected loan loss impairment charge. This reflects
the operational decisions taken in the Company including the substantial
investment in debt management activities.
3.3 The Company reported a reduced underlying
loss before tax of £270 million in the six months to 30 June
2009, compared to an underlying loss of £443 million in the
first half of 2008. While the Company remains loss making, it
expects to confirm this improving trend in its financial performance
when it releases its full year 2009 results during 2010.
3.4 Following the EC's approval of the Government's
State Aid package the Company will recognise a rebate relating
to the cost of the Government loan and guarantee costs of £445million
which will be reflected in the full year statutory results.
3.5 Gross Mortgage lending accelerated during
the second half of the year with the Company achieving its 2009
lending target of £4 billion. The quality of this lending
remains high, with an average LTV ratio of new lending at 55%.
The Company continues to ensure that all its lending is done on
a responsible basis and is carefully underwritten with affordability
for customers a key consideration.
3.6 Arrears increased during 2009, reflecting
broader economic conditions and the impact these have had on Northern
Rock's mortgage book with arrears over three months of 4.11% at
30 September 2009. Arrears have stabilised during the last quarter
of 2009, reflecting the investment in debt management capabilities
and improved affordability levels as a result of low interest
3.7 In its submission of November 2008, Northern
Rock reported on the steps it was taking to develop and strengthen
its approach to debt management.
3.8 The Company has invested significantly in
its debt management function, more than doubling the number of
staff within debt management operations in the last 18 months,
with a primary focus on increasing the level of customer contact.
Customer engagement remains key to maximising dialogue and ensuring
that realistic and sustainable payment arrangements can be achieved.
3.9 We actively engaged in the design and improvement
of Government rescue schemes in early 2009 and were one of the
first lenders to operate the Government's Homeowner Mortgage Support
3.10 Additionally, we have made good progress
in developing our own innovative mortgage rescue solutions which
have to date successfully assisted more than 1,700 customers facing
financial difficulty to stay in their homes.
3.11 This complements our specific commitment
not to take possession of a property until at least six months
after the first arrears event. On average we work with customers
for a significantly longer period of time than this. In all cases,
repossession remains a last resort.
3.12 The number of properties in possession
has fallen from over 4,000 at its peak to around 2,000 at the
end of 2009.
3.13 In November 2009 we hosted our second annual
roundtable of the debt advice community at which we received very
positive feedback, notably from a number of organisations which
were previously critical of our approach to debt management.
Colleague Engagement and Performance Management
3.14 Northern Rock is committed to providing
a supportive and rewarding place to work for all its people. This
would be its objective under any circumstances, but is particularly
so given the Company's recent difficult past, where colleagues
have been working under significant pressure, and have faced a
great deal of uncertainty while often being under an intense media
3.15 During 2009, the Company has implemented
an enhanced performance management system to ensure that individual
performance is managed and rewarded appropriately, while mindful
of external perceptions towards bankers' remuneration. The Company
believes it is essential to have in place a framework which allows
objectives to be set and properly measured, with appropriate development
planning and coaching support in place.
3.16 The Company subscribes to the principle
that there should be no rewards for failure. Its incentive scheme
complies with FSA requirements, including deferral and clawback
provisions within it. Additionally, there were no pay rises for
or bonuses paid to Executive or senior management during 2009,
beyond contractual entitlement.
3.17 The Company recently conducted an employee
engagement survey, which was completed by over 90% of all colleagues,
a substantial increase on 2008. Almost nine out of ten respondents
stated that they enjoy working at Northern Rock and feel they
make a positive contribution to the Company, and while clearly
some uncertainties remain as to the Company's future, the overall
results from this survey were encouraging.
3.18 Northern Rock has been a substantial contributor
to the wider community over the years both through the Northern
Rock Foundation and through direct staff activity. During 2009
Northern Rock has engaged closely with debt advice agencies as
part of its debt management activities as well as supporting its
staff in a wide range of broader community activities.
3.19 Going forward, Northern Rock's community
strategy is being refocused towards being known for helping communities
in financial difficulty, utilising the skills inherent within
the organisation. In 2010 and beyond, Northern Rock will actively
encourage its colleagues to participate in community activities
in support of this objective. We are currently engaging with the
Northern Rock Foundation and more widely to establish the precise
nature of this programme.
3.20 In line with the commitment made when Northern
Rock was taken into temporary public ownership, the Company has
donated £15 million to the Northern Rock Foundation during
2009. Such donations enable the Foundation to support community
and charitable causes mainly, but not exclusively, in the North
East of England and Cumbria. In line with this commitment a further
£15 million will be donated to the Northern Rock Foundation
4.1 The Board governance structures of Northern
Rock plc and Northern Rock (Asset Management) plc are set out
in Appendix 1 to this document.
4.2 Governance arrangements for the two companies
have been agreed by the Government as shareholder and the FSA
as regulator. Each company has its own Board and Executive Committee.
4.3 To facilitate the full separation of the
two companies now that the legal and capital restructure has completed,
Gary Hoffman has been asked by the Government and approved by
the FSA to act as Chief Executive of both companies on completion
of the restructure. There is no change in Gary Hoffman's remuneration
arrangements as a result of taking the role of Co-CEO. The remainder
of each company's Boards will be independent of each other with
robust procedures and service level agreements in place to manage
the arms length relationship that will exist between the two companies.
4.4 Ron Sandler has been appointed Non-Executive
Chairman of Northern Rock plc and Richard Pym has been appointed
as Non-Executive Chairman of Northern Rock (Asset Management)
plc. Richard brings expertise and experience from Bradford and
Bingley, a similar mortgage company, where he will continue in
his role as Chairman.
4.5 With effect from 1 January 2010, Ron Sandler's
remuneration will reduce from £350k to £250k when he
takes on the chairmanship of Northern Rock plc. Richard Pym will
receive a total of £250k for chairing both Bradford and Bingley
and Northern Rock (Asset Management) plc.
4.6 All other remuneration arrangements applicable
to the members of both new Boards will be disclosed separately
at the time of the respective annual report and accounts.
4.7 Biographical detail of Board appointments
for Northern Rock plc and Northern Rock (Asset Management) plc
is included in Appendix 2. These appointments are designed to
provide strong Boards for both companies, harnessing significant
retail banking, financial and operational experience to ensure
each company can meet its objectives and, in turn, deliver value
5. SUMMARY: LOOKING
5.1 Northern Rock (Asset Management) plc will
continue to evaluate options to maximise value to taxpayers as
shareholder and provider of financial support, while continuing
to provide a high level of service to its customers. The Government
has asked us to explore options for how Northern Rock (Asset Management)
and Bradford & Bingley may be able to work together cooperatively,
in the future, in the best interests of taxpayers. At this point
it is too early to speculate on what this might mean in detail.
5.2 Northern Rock plc, a highly liquid and well
capitalised bank, will continue to offer new mortgage and savings
products, supporting market capacity. The Company offers competitive
retail savings products and provides responsible, affordable lending
on commercial terms in taxpayers' best interests. The company
aims to provide high levels of customer service at all times,
differentiating ourselves by doing what we say, and delivering
products based on need as well as adopting a proactive approach
to dealing with customers in financial difficulty.
5.3 Northern Rock's operational and financial
performance continued to improve during 2009 with completion of
the legal and capital restructure a key milestone in building
a stronger future.
5.4 As well as maximising capital efficiency
and delivering best value for the taxpayer, this enables Northern
Rock plc to support the markets in which it operates, and ultimately
prepares the Company for a return to the private sector.
Northern Rock (Asset Management) plc Board
Northern Rock plc Board Level Governance
Ron Sandler, Non-Executive Chairman,
was appointed as Non-Executive Chairman of the existing company
on 1 October 2008 having previously joined the Board as Executive
Chairman on 22 February 2008. He was Chief Executive of Lloyds
of London from 1995 to 1999, and was subsequently Chief Operating
Officer of NatWest Group. He is Chairman of Pearl Group, Paternoster
Ltd and Ironshore Inc.
Gary Hoffman, Chief Executive Officer,
was appointed to the Board of the existing company on 1 October
2008. Previously Group Vice-Chairman and Executive Director of
Barclays plc, he joined Barclays in 1982 as a graduate in economics
from Cambridge University. He is a Non-Executive Director of Visa
Europe and Trinity Mirror plc and is a Trustee of the Charities
Aid Foundation. He is also Vice-Chairman of Coventry City Football
Laurie Adams joins the Board as a Non-Executive
Director. Laurie was appointed to the Board of the existing company
as a Non-Executive Director on 29 November 2007. He is a Non-Executive
Director of Novae Group plc and Parex Bank, as the EBRD nominee.
He was formerly a Non-Executive Director of Siblu Holdings Limited
(formerly Haven Europe Limited) and Managing Director and Global
Head of Legal and Compliance of the Investment Banking Wholesale
Division at ABN Amro Bank.
Richard Coates joins the Board as a Non-Executive
Director, having been appointed to the Board of the existing company
as a Non-Executive Director on 5 August 2008. Richard was Managing
Director of Baseline Capital Limited from 2003 to 2008, a specialist
mortgage data analysis and modelling organisation. For the previous
30 years he was at KPMG UK, rising through various appointments
to become Senior Partner, UK Head of Financial Services. He is
a Non-Executive Director for Police Mutual Assurance Society Limited.
Mike Fairey was appointed to the Board
as a Non-Executive Director on 1 January 2010. Mike was the Deputy
Group Chief Executive of Lloyds TSB Group PLC from 1998 until
his retirement in June 2008. Mike is also chairman of the Lloyds
TSB pension funds, a Non-Executive Director of the Energy Saving
Trust and Vertex Data Sciences and president of the British Quality
Rick Hunkin, Chief Risk Officer of Northern
Rock since 1 September 2008, has joined the Board as an Executive
Director. Rick has nearly 30 years experience in retail banking
and joined the existing company from GE Money UK Home Lending,
where he was responsible for all aspects of risk management. Prior
to this, he was an Executive Director at C&G plc. Since arriving
at Northern Rock, Rick has been instrumental in establishing an
independent Risk function, which has been central to the strengthening
of Northern Rock's risk and control environment. In his role,
Rick is responsible for Risk, Compliance, Legal and Company Secretariat.
Mark Pain was appointed to the Board
as a Non-Executive Director on 1 January 2010. He is a Non-Executive
Director of Punch Taverns Plc, Johnston Press Plc and LSL Property
Services Plc, and a trustee at Somerset House. Mark was previously
Group Finance Director of Barratt Developments Plc, and held a
number of senior Executive and Board positions at Abbey National
Plc including Group Finance Director and Group Sales Director.
Mary Phibbs was appointed to the Board
as a Non-Executive Director on 1 January 2010. She was previously
Deputy Group Chief Credit Officer for Standard Chartered Bank
based in London. In a 30 year career in Banking and Finance she
has held a variety of senior Executive risk and business management
positions with the Australia and New Zealand Banking Group Limited,
the National Australia Bank Limited, Bankers Trust Australia Limited
and the Commonwealth Bank Group. She is a Chartered Accountant
and alumni of PWC and KPMG in London and Sydney.
Richard Pym, Non-Executive Chairman,
joined the Board of Bradford & Bingley plc as Chief Executive
in August 2008, and was appointed Executive Chairman in November
2008 following the company being taken into public ownership,
reverting to Non-Executive Chairman status on 1 July 2009. He
was Group Chief Executive of Alliance & Leicester plc from
2002 to 2007. Richard has held a number of financial and general
management roles during his career, including The Burton Group
plc, BAT Industries plc, British Gas and Thomson McLintock &
Co. He was formerly a Vice President of the British Bankers Association,
a Non-Executive Director of Selfridges plc, and Chairman of Halfords
Group plc. Richard is a Fellow of the Institute of Chartered Accountants
in England and Wales, a Non-Executive Director of Old Mutual plc
and Non-Executive Chairman of BrightHouse Group Ltd.
Gary Hoffmanas above
Kent Atkinson remains on the Board as
Non-Executive Director. Kent was appointed to the Board of the
company as a Non-Executive Director on 5 August 2008. Kent was
previously Group Finance Director of Lloyds TSB plc, and subsequently
a Non-Executive Director. He is the Senior Independent Director
of Coca-Cola HBC SA. He is a Non-Executive Director and Chair
of the Group Audit, Risk and Compliance Committee of Standard
Life plc as well as being a Non-Executive Director of Gemalto
NV and Millicom International Cellular SA. He was the Senior Independent
Director of Cookson Group plc and Telent plc (previously Marconi
Bob Davies remains on the Board as a
Non-Executive Director. He was appointed to the Board of the company
as a Non-Executive Director on 10 October 2008. Bob was Chairman
of the CBI in the North East until December 2008 and is a Non-Executive
Director of Barratt Developments plc. He was Chairman of Biffa
plc, from 2006-08 and Chief Executive of Arriva plc from 1998
to May 2006. Bob was formerly a Non-Executive Director of British
Energy Group plc and Northern Business Forum Limited.
Sue Langley was appointed to the Board
as a Non-Executive Director on 1 January 2010. She is currently
Director of Market Operations and North America for Lloyds of
London, joining in July 2007. Sue is responsible for leading operational
projects across the Lloyds insurance market and for the network
of Lloyds offices in the US and Canada. Previously, she was Chief
Operating Officer and a member of the Executive team for the Hiscox
Group. Sue is a member of the London Market Reform Group, is currently
a Board Member of Acord and is a Vice President Insurance Institute
London (IIL). Prior to joining Hiscox, Sue worked for Thomson
Tour Operations and PricewaterhouseCoopers, where she was a Principal
Consultant specialising in change management.
Keith Morgan was appointed to the Board
as a Non-Executive Director on 1 January 2010. He is Head of Wholly-Owned
Investments at UKFI, responsible for managing the Government's
shareholdings in Northern Rock and Bradford & Bingley. Keith,
joined UKFI from Banco Santander. Until July 2009, he was a Board
director of Sovereign Bancorp in the US focusing on the integration
of Sovereign into Santander. He was previously Director of Strategy
and Planning at Abbey National, where he was a member of the Executive
Committee, and was also Chairman of Santander's Asset Management
and Credit Card businesses in the UK. Before joining Abbey in
2004, Keith spent 18 years at LEK consulting, where he was a Partner
specialising in financial services.
Philip Remnant remains on the Board as
Non-Executive Director, having been appointed to the Board of
the company on 22 February 2008. He is Chairman of the Shareholder
Executive and is a Senior Adviser of Credit Suisse's investment
banking division in Europe. Previously, he was a Vice Chairman
of Credit Suisse First Boston in Europe and was Director General
of the Takeover Panel between 2001 and 2003. He formerly held
senior investment banking positions with BZW and Kleinwort Benson.
Andy Tate joins the Board as Chief Operating
Officer, having joined the company on 1 October 2008 as Director
of Debt Management. Andy has led the significant investment in
the debt management function to ensure that the maximum possible
support can be provided to customers facing financial difficulty.
He has 25 years' experience in retail banking, initially with
National Westminster Bank and then Royal Bank of Scotland since
2000. At RBS he held a number of senior positions in strategy,
change management and operations, latterly as the Head of its
Collections and Recoveries operations. In addition to his existing
responsibilities for debt management, he takes responsibility
for Mortgage Operations.