´óÏó´«Ã½

Bryan Rocks on

• Robert Peston
• 19 Oct 07, 03:51 PM

Ever since the run on Northern Rock, its chairman Matt Ridley was always going to resign – simply because there is nothing more humiliating and damaging for a bank than suffering a flight of capital.

At the ritual humiliation of Rock executives by the Treasury Select Committee earlier this week, Ridley was asked how he felt after having brought shame on the British banking industry. It was hard not to feel his pain as he mumbled his excuses.

This former journalist – whose lack of experience running any substantial business has been widely criticised – is being replaced by Bryan Sanderson, one of the breed of BP lifers who populate the boardrooms of Britain.

Sanderson's more recent appointments were as chairman of the big international bank, Standard Chartered, and of Sunderland Football club. Also he was at the apex of BUPA, the private health business.

Can he help take Northern Rock out of intensive care?

To say it won't be easy is an understatement. Northern Rock is now in receipt of £16bn of emergency funding from the Bank of England - and money markets are a long way from being liquid enough again to refinance all that now or in the near future.

But Sanderson has committed to stay on till a solution is found - and if only part of the businss can be sold, he'll remain with the rump.

But why on earth, at the age of 67, is he coming out of retirement to fill the most rickety seat in British business? Well like many from the North East, he wants to restore dignity to an institution that was a great source of local pride.

It will never be restored to its former glory. But if Sanderson can manage either its sale or break-up in a way that preserves jobs and some value for its shares, he'll be a proper toon hero.

• Permalink
• Comments