Adam Applegarth
Adam J. Applegarth (born August 1962 in Sunderland, England)[1] was the Chief Executive Officer of the Gosforth, Newcastle upon Tyne based Northern Rock bank, one of the first victims of the so-called subprime mortgage crisis. The bank was subsequently nationalised[2]
The son of a music and drama teacher, he attended Sedbergh School and Durham University, where he read Mathematics and Economics.[1] He joined Northern Rock in October 1983 as a graduate trainee, becoming General Manager in 1993, joining the Board of Directors in 1996 and being appointed Chief Executive in 2001 at the age of 39 and remained in this position till he left the bank in December 2007.[1]
[edit] Northern Rock
Under his direction, the mortgage specialist bank had rapidly expanded to become the fifth-largest mortgage provider in Britain.[3][4] Applegarth has recently received extensive press attention in the UK as a result of a request for a loan from the Bank of England that resulted in a 'run on the bank'.[5][6]
It was revealed that he was conducting an affair with a junior employee when the bank was running into trouble. She has since had his child.[7]
[edit] Crisis
Under his leadership, the Northern Rock experienced a 'run' on the bank in September 2007. This was the first time that this had happened in the UK in over 100 years. He was widely criticised by the Treasury Select Committee shortly afterwards for his handling of the crisis. He was reported to receive a £760,000 (£63,333 a month) payoff.[8]
In January 2009 Guardian City editor Julia Finch identified him as one of twenty five people who were at the heart of the financial meltdown.[9]
[edit] References
- ^ a b c Sims, Paul. (16 September 2007.) Northern Rock: The £1.4m-a-year golden boy now facing an uncertain future Daily Mail. Accessed 23 September 2007.
- ^ Thousands of British and Irish depositors lay siege to embattled Northern Rock; Share value plunges 40% Finfacts. 17 September 2007. Accessed 23 September 2007.
- ^ Reed, Stanley. 20 September 2007. Why Northern Rock crumbled Business Week. Accessed 23 September 2007.
- ^ Moreton, Cole. (16 September 2007). Millionaire boss who joked he couldn't make the tills balance counts the cost The Independent. Accessed 23 September 2007.
- ^ Credit crisis hits lender in Britain. New York Times 17 September 2007. Accessed 23 September 2007.
- ^ Dey, Iain and Patrick Hennessy. 17 September 2007. Angry savers force Northern Rock to be sold. Telegraph Accessed 20 September 2007.
- ^ http://www.mailonsunday.co.uk/pages/live/articles/news/news.html?in_article_id=504215&in_page_id=1770 How married Northern Rock chief enjoyed an affair with a junior employee as the bank headed for disaster] - IAN GALLAGHER and NIGEL GREEN, Mail on Sunday, 22 December 2007
- ^ http://www.northumberlandgazette.co.uk/latest-north-east-news/Huge-payoff-for-Northern-Rock.3930768.jp
- ^ http://www.guardian.co.uk/business/2009/jan/26/road-ruin-recession-individuals-economy
