Northern Rock finance boss is fined for fudging figures
A FORMER Northern Rock finance director has been fined £320,000 and banned from working in banking.
David Jones admitted allowing false mortgage figures to appear in a document released along with the firm’s accounts. He allowed the false reporting to continue for almost a year in the firm’s trading updates.
The figures masked the extent of the problems facing the stricken bank. The correct figures would have either increased arrears by over 50 per cent or possessions figures by approximately 300 per cent.
Margaret Cole, FSA director of enforcement and financial crime, said: “Even though other senior directors within the firm were involved in the misreporting of arrears and possessions figures, as a senior director himself and as an FSA authorised person, Jones had a duty to reveal the true position to the public and to important internal committees.
“He had numerous opportunities to put things right, but failed to do so.
“This is a message to all FSA approved persons, that they must take their individual responsibilities seriously at all times, or suffer the consequences.”
The FSA has fined the bank’s former deputy chief executive David Baker £504,000 and former credit director Richard Barclay £140,000.