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Letter: YOUR SHOUT - Rock's risky business; northern rock.


THE reason Northern Rock has become Northern Wreck is arrogance and incompetence.

Arrogance, because they knew they were doing business in a different way to all other mortgage lenders but didn't wonder why the other banks were not doing the same as them.

They just assumed that they were cleverer than the likes of Barclays and Lloyds.

And incompetence, because they did not manage their risks.

Any business, especially one which has other people's money at stake, should look to what might go wrong and what to do if it does.

However unlikely the events which broke Northern Rock were, they were so catastrophic that they should have been at least considered in a risk plan.

As it is the thousands of small shareholders in the North East that have lost most, if not all, of their investment and ordinary employees face losing their jobs, while the people at the top who are responsible for the disaster will walk away with their pockets and pension funds stuffed full.

It is the equivalent of the captain of the Titanic getting the best seat in the lifeboat.

D CHARLTON, Benton Park Road, Newcastle.
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Title Annotation:Letters
Publication:Evening Chronicle (Newcastle, England)
Date:Dec 5, 2007
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