Northern Rock CFO steps down due to FSA probe

Northern Rock Asset Management's chief financial officer David Jones, who was at the helm when the bank was rescued, is stepping down from his role with immediate effect to focus on a Financial Services Authority investigation.

Jones took up the finance director role at Northern Rock in 2007 having been deputy FD for the previous seven years.

Following the bank's bailout in 2008, in which Anne Godbehere was appointed chief financial officer, Jones took up a senior finance role at the Rock. Godbehere stepped down from her role in 2009.

At the start of the year the bank restructured into two separate entities - Northern Rock Asset Management (NRAM) and Northern Rock plc.

Jones, who has been with the bank for 14 years, was appointed chief financial officer of NRAM on 1 January this year while Jim McConville was recruited to CFO at Northern Rock plc.

In a statement NRAM said Jones was stepping down "to focus on an ongoing FSA investigation into matters relating to a period before the company entered public ownership".

He is succeeded by Hugh Graham, the bank's head of treasury operation, on an interim basis. Graham has previously worked as treasurer at Zurich Financial Services and Barclays Bank.

NRAM kept approximately £50bn out of £60bn of so-called "toxic assets" - namely residential mortgages, unsecured loans of £3.9bn plus the government bailout.

Northern Rock plc was given the remaining £10bn of mortgage loans, the retail deposit and savings book, among other loans.

Last week the FSA fined both the former deputy chief executive and former managing credit director at the pre-restructured bank a total of £644,000.

Further reading:

McConville joins Northern Rock as CFO

Former Abbey FD joins 'new Northern Rock' board

Godbehere to depart the Rock

Former Northern Rock CFO to take up UBS role