The Long Goodbye

The Chairman of Northern Rock, Matt Ridley, finally resigned on Friday after enduring several weeks of humiliating media articles and a grilling last week by the Treasury Select Committee that left his reputation and the reputation of the board in tatters.

During the weekend it emerged that he will not receive a pay-off from his £315,000 a year job.

The Treasury Select Committee accused him of "damaging the good name of British banking".

This is but the first head to roll, the question is will the others leave without a pay-off?

The Treasury Select Committee will now call investment banks, ratings agencies and accountants for a new series of hearings; after widening the terms of reference of its inquiry into the credit crunch.

The hearings will last until at least the end of 2008.

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Northern Rock's Directors Face Grilling

Top executives from Northern Rock are currently being grilled by MPs at the Treasury Select Committee. Chief executive Adam Applegarth, Chairman Matt Ridley, non-executive directors Sir Ian Gibson (who is also deputy chairman of Morrisons and chairman Trinity Media) and Sir Derek Wanless are are among those who are facing the committee.

Committee deputy chairman Michael Fallon kicked off the proceedings, setting the tone, with a cutting question as to whether the hapless directors actually "know what's happening at their own bank".

Seemingly the directors are employing the tactic of blaming "unexpected events". Maybe they should have taken Prime Minister Macmillan's comments many years ago, as to what knocks governments off course ("events dear boy"), to heart.

On being pressed by Fallon as to why no one has resigned, Ridley said that his resignation is there if the board wants it.

Well, what's stopping them accepting it?

It is going to be a long day for these hapless directors!

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