More questions arise about the grubby ethics of Northern Rock, the failed bank bailed out by our government with billions of our pounds.
According to the Daily Telegraph it has emerged that the now state-owned bank has been claiming that a tiny charity, Downs Syndrome North East (DSNE) is the beneficiary of a £45 billion offshore fund set up by Northern Rock’s 50% shareholder Granite, and registered as a charity to get the tax benefits.
Reportedly DSNE knew nothing about the arrangement until recently and has not in any case received a penny.
Northern Rock’s ethics were also questioned recently when the Sunday Telegraph reported that it had set up a separate company, Kielder Property Management Ltd (No 6295029) to buy and sell the homes it repossessed from customers who couldn’t keep up the mortgage payments. This was set up by four managers at Northern Rock, rather than involve the company’s directors and was widely seen as a contemptible move to exploit its customers’ misfortune and misery.
Northern Rock are members of the British Bankers Association (BBA) for what it’s worth, arguably nothing at all on the above showing.