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Rock pledges to repay taxpayers | Rock pledges to repay taxpayers |
(about 1 hour later) | |
Newly-nationalised bank Northern Rock has promised to repay its £24bn state loan by 2010. | |
The news came as it revealed a loss of £167.6m in 2007 after problems in world financial markets hurt its operations. | |
Northern Rock also revealed that it will pay former chief executive Adam Applegarth a total of £785,000 as part of his severance agreement. | |
Shareholders have criticised the payout after the value of their investments tumbled because of the bank's problems. | |
Northern Rock had to be rescued by the Bank of England in September 2007 after coming close to insolvency. | Northern Rock had to be rescued by the Bank of England in September 2007 after coming close to insolvency. |
BBC business editor Robert Peston said any severance payments to Mr Applegarth were always likely to provoke controversy. | |
However, he added that the £760,000, plus £25,000 in non-cash and other benefits, that Mr Applegarth will receive is less than his contractual entitlement. | |
One contributor to the bank's loss was just under £50m of payments to City firms and professional advisers, incurred by it and the government when it was struggling to avoid nationalisation. | One contributor to the bank's loss was just under £50m of payments to City firms and professional advisers, incurred by it and the government when it was struggling to avoid nationalisation. |