Government Must Assume Full Responsibility For Northern Rock - Cable

7.25.00pm GMT Fri 16th Nov 2007

Commenting on the resignation of Adam Applegarth, Chief Executive of Northern Rock, as well as four non-executive directors including Sir Derek Wanless, Liberal Democrat Acting Leader and Shadow Chancellor, Vince Cable MP said: "I have been calling for these resignations for some time. Management errors led to this crisis and the first run on a British bank for more than a century.

"The Government should have cleared out the management of Northern Rock weeks ago as a condition of its loan, rather than waiting for them to go. Northern Rock must now change its business practices as well as its faces.

"I nonetheless welcome this step as belated recognition that some of the key personnel in Northern Rock should be held accountable for its failures, and for the exposure of billions of pounds of public money which is now at risk.

"So much taxpayers' money is now at a stake, there is no point in hoping for a knight in shining armour from the private sector to save it. The government must assume full responsibility for the bank and take it over."