Nationalised lender Northern Rock has confirmed that it will not be taking legal action against the executives that were in charge of the bank before its collapse last year.
Chairman Ron Sandler told reporters this morning that there is "insufficient grounds" to proceed with a case against the former board, which was led by chief executive Adam Applegarth. Applegarth stood down as last December with a £760,000 payoff.
According to mortgagestrategy.co.uk, Mr Sandler said: "We have looked at this matter very carefully over some considerable time we asked our advisers Freshfields and KPMG Forensic to conduct a thorough assessment of the conduct of the previous board and indeed of the auditor on these matters.
"The message they have given to the board has been clear and it is advice that we have followed and that is that there are insufficient grounds to proceed for any legal action for negligence and therefore we will not be taking this matter any further."
Mr Sandler also said Northern Rock is "well ahead" in repaying the £26billion Government loan; nearly 60 per cent had been repaid by the end of September leaving £11.4 billion outstanding.
Although the chairman said he was pleased with the progress, he admitted that Northern Rock is still "significantly loss-making" estimating that profit and private ownership is still years away but added that they are still working towards the target set in February of breaking even by 2011.
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