David Martin

Northern Rock Crisis: Old and New Solutions

Thanks for the link.
The reason that normal banking practise was not followed is quite clear though, regardless of how the authors try to dance around it.
This was a political decision, and the area where Northern Rock is based is important to Labour.
Not only were the losses passed on to the taxpayer, but such executives who did leave were given a golden parachute after bankrupting their company, and the remainder continued excessive lending practises.
It is also clear that lies were told by the government ministers on the likely losses, and that gross negligence had occurred by the overseeing authority - the person who had to fall on his sword was again generously compensated.
A position in either government or a bank is, or should not be, an excuse for pillaging the taxpayers money in this way, and all of those responsible should be held to account.
Hopefully the next government will put this in hand, but I doubt it, as it is only the common people who will have to pay for these lies and scams, and those responsible look after their own.