Northern Rock CEO expected to leave post, news reports claim

1 November 2010

Gary Hoffman, chief executive officer (CEO) at Northern Rock, is expected to announce his resignation imminently, news reports have claimed.

According to Sky News, which was the first news outlet to break the story, the current CEO is tipped to join NBNK, a new start-up venture being launched by Lord Levene, chairman of Lloyd’s of London.

Mr Hoffman is widely credited with helping Northern Rock remain afloat following the run on the bank in 2007, which resulted in the government acquiring the financial institution.

He is also believed to be the architect of the bank’s restructuring where it was separated into two divisions - a ‘good’ bank, featuring its ongoing operations, and a ‘bad’ bank, which included its more toxic assets.

Ron Sandler, current chairman at Northern Rock, is expected to expand his role to include managing the bank if Mr Hoffman’s departure goes ahead as anticipated.

Northern Rock and the UK Financial Investments, which manages the government’s stakes in banks it helped lend capital to during the credit crunch, have not yet commented on the matter.

The main strategy for NBNK is to raise enough capital to acquire 600 retail branches which the Lloyds Banking Group is planning on selling.

By Jim Ottewill

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