‘There will have to be some threat to jobs,’ said Collins Stewart analyst Alex Potter. ‘The priority will be to reduce the asset base of the bank.’
Northern Rock’s new FD Ann Godbehere began her bid to rescue the stricken bank alongside executive chairman Ron Sandler last week.
Her first task, after travelling to Newcastle to meet the bank’s staff, will be to wade through the asset-backed debt the Rock used to fund its business.
Godbehere is now in control of a reported £113bn of Northern Rock assets and has the future of 6,500 staff in her hands.
Analysts have said that Godbehere will look to shrink the company’s asset base, which means that job cuts including a cull of the finance function could be in the pipeline.
The Treasury lost patience with Virgin and Olivant in going down the nationalisation route.
‘In the current market conditions, we do not believe the two proposals deliver sufficient value for money for the taxpayer,’ chancellor Alistair Darling said.
Godbehere is being paid £75,000 a month to do the job. She has spent 31 years in the profession.
She qualified as a certified general accountant in 1983, but she started her ascent in 1976 when she joined Sun Life in Canada.
Godbhere went on to join Mercantile & General Reinsurance Group five years later and when M&G was bought by Swiss Re a year later she opened her CFO account at Swiss Re’s North American arm in 1996.
By 1998, she had crossed the Atlantic to become CFO of Swiss Re’s London Life & Health Division and graduated to group control by 2003.
She was judged to be one of the business world’s 50 most powerful women by Fortune magazine after joining the all-male board.
The market was unprepared for her surprise resignation at the end of 2006. Rumours abounded that a clash between her and Jacques Aigrain, the Swiss Re chief executive had led to her departure.
Analysts describe her as ‘a good communicator’ and ‘a safe pair of hands’, but Godbehere’s financial acumen will be put to the test as Rock shareholders, investors, the analyst community and the British taxpayer look for a fitting resolution to the the troubled bank’s problems.
Investors challenge the government over knowledge-based economy plans 15 May 2008
In the wake of the Northern Rock nightmare, the nation awaits Darling’s first Budget next week with bated breath. Our reporter outlines the possible outcomes 06 Mar 2008
Intelligent Energy ramps up funding for R&D and partnerships 04 Jul 2008
Focus on energy savings through fuel efficiency for homes and public and commercial buildings 04 Jul 2008
ActionAid accuses G8 of driving more people into poverty by pursing biofuels and cutting agri-aid 04 Jul 2008
More news
Businesses' new found focus on the environment may be welcome, but according to Conrad MacKerron, it is taking attention away from workers' rights issues – and the credibility of the entire green business movement could be at risk 03 Jul 2008
It may be a year old, but as Dell's Jonathan Perry explains, firms looking to get rid of their old IT kit still need to pay attention to the WEEE directive 02 Jul 2008
Telling customers about your environmental targets is all well and good but, as Paul Thomas argues, they are meaningless if you do not know how they are to be achieved 01 Jul 2008 More in-depth
Post your comment
Send an email to the Business Green editor at feedback@businessgreen.com
