Commenting on Northern Rock’s confirmation that its new management has launched an investigation into the possibility of taking legal action against the bank’s former board, Liberal Democrat Shadow Chancellor, Vince Cable said:
"Though belated, this investigation is very welcome. The Liberal Democrats have long argued that the previous board must be held to account, particularly former chief executive Adam Applegarth.
"It is ridiculous that Mr Applegarth has been able to spend the last six months whiling away the hours on his £63,000 a month redundancy package, without any investigation into how he got Northern Rock into this mess.
"It is essential that this investigation is also extended to Northern Rock’s auditors, who must be held to account for their gross oversights.
"Northern Rock Chairman Ron Sandler must ensure no one from the previous administration is allowed to duck the responsibility they hold for the run on Northern Rock."