Richard Pym has been named chairman of the new Northern Rock ?bad bank? ? Northern Rock Asset Management (NRAM) ? the company that will take over most of Rock?s mortgage business when the split happens on 1 January 2010, an article on Telegraph.co.uk has said.
Mr Pym?s was one of a number of appointments announced by Northern Rock on Tuesday (15 December), all of which have been agreed by the Treasury and the Financial Services Authority (FSA). As Mr Pym ? former chief executive at Alliance & Leicester ? is to continue his role at Bradford & Bingley there is some speculation that NRAM will take on the mortgage book of B&B, which is now part of the Santander group.
Northern Rock confirmed that Mr Pym would continue his role at B&B, while bringing his ?expertise and experience? to NRAM.
Bradford & Bingley?s mortgage book was effectively kept by the taxpayer when it was broken up in September 2008, with Santander taking its deposit book. Thus, the speculation is that the B&B mortgage book will go with Mr Pym to NRAM.
Garry Hoffman ? current chief executive at Northern Rock ? will continue in the role at NRAM, as well as at the ?good bank?, which will be responsible for Rock?s savings accounts and new mortgage and other lending.
Rich Hunkin, chief risk officer, is to stay in the role with Northern Rock and join the board as an executive director. Former deputy chief executive of Lloyds TSB, Mike Fairey, will join the Northern Rock board as a non-executive director, and so will Mark Pain, former finance director at housebuilder Barratt Developments.
For mortgage holders with Northern Rock and Bradford & Bingley currently, there are unlikely to be any fundamental changes to their mortgages in the short term.
