Adam Applegarth interview on June 28th - a revealing glimpse into the mind of a financial criminal

Adam Applegarth CEO (now almost EX CEO) of Northern Rock gave an interview published on June 28th on "Thisismoney.co.uk.

This was 2 days before the period end when six month interim accounts were drawn up by the Directors, and just after the company isued a profits warning.

It is worth remembering that he had sold on Lord Patel's birthday 25th Jan 2006 52,253 shares @ 957p = £500,061.21 and the next day 111,426 shares @ 957p = £1,066,346.82).

April 2007 he bought under a company wide share scheme 262 shares for a approx £3,000...

Quotes :

"All of Applegarth's wealth is tied up with Northern, where he has his mortgage, current account and his company pension. "

"I genuinely think Northern Rock shares are a steal, so to a certain extent we are vulnerable because we are small. Of course it would be good to remain independent, but we are a PLC and I am not the master of that destiny. "

"Bear Stearns reckons fast-growing Northern's business model is flawed in the current environment, when Libor is accelerating faster than the Bank of England base rate. "

"This is the stickiest rate environment there could be for us, yet we are still getting a 15% profit increase. But that kind of gets lost in the wash," ( The 6 months results showed a profit increase of 1%)

"There are always good days and bad days,' he smiles. The bitterness of the profit downgrade was sweetened by Northern finally receiving its Basle II waiver yesterday, which will release spare capital and pave the way for 'a huge increase in dividends and share buybacks" (The 6 months accounts incorporated a dividend increased by 33%.)