Former Northern Rock bosses disciplined by FSA

The Financial Services Agency (FSA) has issued fines and bans to two former Northern Rock directors.

Davis Baker, ex-chief executive at the bank, has been ordered to pay £504,000 for inaccurately reporting mortgage arrears figures.

He held the position at Northern Rock from January 2004 to March 2008 and has also been prohibited for having any role in working for another regulated firm.

Richard Barclay, who was managing credit director for the bank’s debt management unit, has been fined £140,000 and banned from having ’any significant influence’ at a firm regulated by the FSA for his role in the offence.

’Baker and Barclay both failed to meet the standards we require of senior individuals within FSA-regulated firms,’ observed the FSA’s director of enforcement and financial crime Margaret Cole.

She added the punishment sends the message the regulatory body will take action against those in the industry who do not perform to a high standard.

Northern Rock is to have its retail deposit guarantee lifted by the Treasury next month.

The bank is to be split into two sections, with the asset management company potentially offering services to clients with high levels of personal wealth.ADNFCR-2318-ID-19717797-ADNFCR