It was reported yesterday that David Jones, the bank’s former finance director, is being investigated by the Financial Services Authority (FSA). It is alleged Jones was aware of a deal struck between executives to hide almost 2,000 problem loans from investors.
Last week David Baker was hit with the record fine and banned from “performing any function in relation to any regulated activity”, effectively ending the chances of him returning from retirement. Former managing credit director Richard Barclay was fined £140,000 for his role in the cover-up.
The FSA declined to comment.
A Northern Rock spokesman said: “Northern Rock takes matters of financial regulation extremely seriously and, following speculation, the company confirms that it continues to work with the FSA on an investigation relating to events that occurred prior to it entering public ownership.
“The investigation does not relate to the Company itself.”
It is thought Jones was the unnamed third man referred to in the FSA judgement last week.