Former Swiss Re FD lined up as Northern Rock deputy

The man who will run Northern Rock should it be nationalised, Ron Sandler,
has lined up former Swiss Re finance director Ann Godbehere as his deputy

The FT reports that Godbehere will take on the key finance director
role at the bank if the government fails to strike a suitable deal with the
private sector.

Godbehere was highly respected during her time as the FD of Swiss Re, the
world’s largest reinsurer.

The government’s plans to find a private sector buyer for Northern Rock have
been vociferously criticised by opposition MPs, who say the structure of a
potential deal amounts to an ‘accounting trick’.

The government is planning to securitise £25bn of Northern Rock’s mortgage
pile, parcelling them out as bonds and taking on some of the risk.

The move may mean the bank will no longer be on the balance sheet, but will
appear in the government books only as a contingent liability.

Further reading:

Rock plans are ‘an accounting trick’

PwC denies conflict at the Rock

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