Collapsed Northern Rock’s bosses ‘had lost the plot’

Northern Rock’s toxic culture at the time of the bank’s collapse was laid bare by its former chief executive today.

Gary Hoffman, who was parachuted in to run the lender after it was taken into public ownership, said he found an unquestioning and unhappy workforce.

Speaking to the BBC as the 10th anniversary of the bank’s collapse approaches, Hoffman said: “The management had completely lost touch with the coalface, and did not know what was happening.

“There was an attitude that you did not question what was going on, which was a tragedy because there were extremely good people at the bank.”

Northern Rock was eventually split into “bad” and “good” banks, with Virgin Money buying the latter.

However, Hoffman revealed the Treasury also considered a refloating of the bank as an independent business, and its complete rundown and closure.

He left in 2010 and has led insurer Hastings since 2012.