Partner Article

Rock reshuffle sees boardroom changes

STATE-OWNED lenders Northern Rock Asset Management (NRAM) and Bradford & Bingley have been put under a new holding company by UK Financial Investments.

The two companies have been placed under the umbrella of a new holding company called UK Asset Resolution.

Both companies will remain as separate legal entities, with their own balance sheet and government support arrangements.

Meanwhile Gary Hoffman, who has been chief executive of both NRAM and Northern Rock plc since 1 January 2010, has stepped down as chief executive of NRAM and as a member of the NRAM board with immediate effect.

He remains chief executive at Northern Rock plc.

Andy Tate, appointed to the NRAM board as chief operating officer on 1 January, has also stepped down from the board with immediate effect, but remains in a senior management capacity with Northern Rock plc.

Mr Hoffman said: “Following the successful rescue and restructure of the former Northern Rock business, NRAM returned to profitability in the first half of 2010 as income increased, impairment charges were reduced and arrears continued to stabilise.

“This trend has continued in the third quarter and I feel NRAM is being handed over in good shape for the future.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .