Northern Rock - Shares [Merged Threads]

gt94sss2

Northern Rock plc announces significant changes to its Board to coincide with the start of the second phase of its strategic review. The streamlining of the Board is intended to assist a smooth and rapid decision making process around the strategic review of the Company's options, which is currently in progress.

Non Executive Directors

John Devaney and Simon Laffin have agreed to join the board as non-executive directors effective upon each of them obtaining approval from the FSA under its approved persons regime.

Mr Devaney is the Chairman of National Air Traffic Services (NATS) and also the Chairman of Telent plc.

Mr Laffin is an adviser to CVC Capital Partners and was previously the Chief Financial Officer and Property Director of Safeway Plc.

Chairman Bryan Sanderson said:

'I am delighted to welcome John Devaney and Simon Laffin to the Board. I believe they have the right experience to help Northern Rock through its ongoing strategic review.'

Sir Derek Wanless, Nichola Pease, Adam Fenwick and Rosemary Radcliffe will retire from the Board as Non Executive Directors with immediate effect.

Sir Ian Gibson and Michael Queen continue to serve as Non Executive Directors.

Bryan Sanderson said:

'I would like to thank the retiring Non Executive Directors for their efforts over a number of years and their commitment during the very difficult circumstances of the last few months. Special thanks are due to Rosemary Radcliffe's contribution during a period of ill-health. I wish her a speedy recovery.'

Executive Directors

Adam Applegarth, Chief Executive, has tendered his resignation and it has been accepted by the Board subject to him continuing as a Board Director and Chief Executive throughout the second phase of the strategic review process, which is scheduled for completion no later than end of January 2008.

Bryan Sanderson said:

'Adam's participation in the next phase of the strategic review is important, not least due to his extensive knowledge of the business and his ability to lead the process during this difficult period.'

David Baker, Keith Currie and Andy Kuipers are standing down as Board directors, but remain officers of the company and continue to have responsibility for their full range of duties.

Dave Jones continues to serve on the Board as Finance Director.

Notes to Editors:

Biographical information

John Devaney has been Chairman of NATS since 2005 and is also Chairman of Telent plc (previously Marconi Corporation Plc). John steered Telent through its re-listing in January 2003, the UK's largest ever recapitalisation. He is also Chairman of BizzEnergy, one of the UK's largest independent energy retailers and Tersus Energy Plc, a small bio-fuels company listed on AIM. He was formerly Chairman of Exel Plc, MD, Chief Executive then Chairman of Eastern Electricity and President of Perkins Engines. He has also held non-executive directorships with Midland Bank Plc and British Steel Plc.

Simon Laffin is an industrial adviser to CVC Capital Partners specialising in retail and consumer services. He started working with CVC in December 2004. Prior to this he was Chief Financial Officer and Property Director of Safeway Plc for 10 years. Mr Laffin holds an MA in Economics, Social & Political Sciences from Cambridge University and is a qualified accountant.

No further information is required to be disclosed under Rule 9.6.13 of the Listing Rules.

from here

Regards
Sunil

caveat_emptor

I can't make out why the two remaining non-exec directors haven't resigned, this was collective mismanagement and they should all go. Looking at the CVs of the directors it's incredible that people with high profile and supposedly responsible positions allowed NR to get in such an almighty mess. They have brought down a long established bank, cost the taxpayer and shareholders millions and will walk away at no direct cost to themselves, unless they are shareholders that is. I doubt that any other company has paid it's directors so much for failure related losses.

baby_boomer

Bear Trader Evil Knievil tries to talk Rock shares down to 5p

bristolleedsfan

baby_boomer wrote: »

Bear Trader Evil Knievil tries to talk Rock shares down to 5p

cant get your link so heres another.


http://blogs.guardian.co.uk/markets/2007/11/back_to_northern_rock_for.html

[Deleted User]

NRK shares in auction just now. Uncrossed at just 60p

Moorepart

NO BOOM, NO BUST

Sorry Crash Gordon what just happend to NR :j

jamesd

share slide halted: "Shares ... rose 14% ... amidst renewed hopes that the company may survive. The hopes were raised after several banks agreed to extend their credit lines to the beleaguered firm".

Don't get your hopes up. That was Marconi back in 2001 after it had fallen from 1250p to 38p. It continued to fall until the shares became effectively worthless, just 0.8p each on the day before New Marconi got them all at the rate of one 60.5p New Marconi share for every 559 old Marconi shares: a final valuation of just 0.1p per share. And those who bought at that dirt cheap 0.8p price the trading day before managed to lose 88% of the money they spent.

Northern Rock has fallen. It still has further it can fall. You still have a chance to save some of your money if you own the shares. Or you can gamble it, with a high chance of the usual end result for gamblers.

codger

gt94sss2 wrote: »

Executive Directors

Adam Applegarth, Chief Executive, has tendered his resignation and it has been accepted by the Board subject to him continuing as a Board Director and Chief Executive throughout the second phase of the strategic review process, which is scheduled for completion no later than end of January 2008.

Bryan Sanderson said:

'Adam's participation in the next phase of the strategic review is important, not least due to his extensive knowledge of the business and his ability to lead the process during this difficult period.'


Regards
Sunil

How good that Adam's extensive knowledge of the business and his ability to lead it in an easy period makes him so well-placed to play a vital role now.

Perhaps he'll qualify for a bonus in addition to the £690,000 cheque he collects at the end of January, just prior to the commencement of the £266,000 company pension he will receive every year for the rest of his life.


:mad:

[Deleted User]

Unfortunatly when things like this happen the shareholders take the brunt.

Its very correct in that many PIs have committed financial suicide over NRK. Although other PIs have also made a fair bit trading the dead cat bounces.

It does have value but when confidence has completely gone the firesale ensues. Ironically NRK is nothing more then a middle man, selling their loans on to other banks that invest in it, the problem is they cant raise the funds to cover this anymore as the markets wont provide funds for loans given that they are taking heavy losses on thei other investments. NRK, B+B and A+L are not banks that invested in them they merely sold them on, luckily B+B and A+L have continued to secure their much smaller 40% of loan book requirement from teh markets, but it doesnt mean they wont have to make cut backs to their offering and the demolision of the UK housing markets will mean less loans = less fees and less profits. This could take years to recover, they might be at a good price now but its hard to tell.

As a recommendation I cant really say more then "wait and see" on bank stocks, more bad news is going to be released and when it does everyone will take a hit.

RBS has yet to reveal their cards in the initial subprime loss game. They bought part of ABN ambro and apparently ABN are up to their neck in the naughty stuff.

Its also worth noting that what we are seeing now is the tip of the iceberg in defaults, more and more US subprimers will turn up to their bank asking for another 10% to fund their mortgage payments over the next year in the pyramid selling extravaganza, more and more will get turned away and more and more defaults will occur.

Complicated situation, my predictions in the cristal ball-

continued collapse of the US dollar - trading may even be suspended
Gold and commodity prices will stay at high prices as people try to protect themselfs against teh rapid printing of US notes - inflation, NB we are NOT immune we are linked quite closely to the fortunes of yankeeville.
Continued demise of the financial system, that will be bought up at rock bottom prices by groups and middle eastern, chinese investors.
House prices down probably by 30%, recession could create a major crash - all depends on how the economy holds up over the next 3 years.
Certainly will be a lot of jobs lost in the financial sector and the city
Possibly fees introduced on bank accounts, they will blaim people that claimed back fees, but the real reason is their own stupidity

Very sticky situation

bristolleedsfan

codger wrote: »

Perhaps he'll qualify for a bonus in addition to the £690,000 cheque he collects at the end of January, just prior to the commencement of the £266,000 company pension he will receive every year for the rest of his life.


:mad:

mr applegarth pension reflects all the years he has been with the company, the cheque stated that he will be collecting at end of january is peanuts compared with the value of shares mr applegarth cashed in, during the 12 months prior to NR collapse.

http://www.guardian.co.uk/business/2007/nov/15/northernrock.banking