THE reasons for Northern Rock disaster chief executive Applegarth's quick scuttle out of his office and down the back stairs for full-time departure last week became a little clearer yesterday when the Bank of England admitted the loans to the toppling bank have now hit £60 billion.
It looks very much like New Labour, having got rid of Post Office small saving accounts and completely knackered a traditional method of getting children into a savings habit, is going to have to open its own piggy bank and Nationalise the still massively haemorrhaging Northern Rock.
A Bank take-over can now only be attractive to Sado-Masochists and suicidal accountancy examination candidates. No sane qualified person would take the job on. This is a bleed of jugular arterial proportions. No Virgin plaster is going to fix this: Radical surgery is called for...in clinicians' parlance it would be termed a commando operation because the surgeon has to do very brave things.
I said last week, we have fought World Wars on less and this figure represents twice the UK Defence budget.
When are those in Establishment, The Bank of England and Government to be called to account for this gross mismanagement?
This is the Bank of England's own photograph of Sir John Gieve the Deputy Governor in charge of financial stability. For an example of how pressure can affect looks take a glance at yesterday's picture by following the link "Moves Closer" at the foot of this piece.
The Bank of England, deputy head Sir John Gieve, was under severe pressure yesterday but told MPs he was "doing a good job".
Oh? Right ho then! This is not a Norwegian Blue. This is not a dead parrot. Banks just lie prostrate, toes up like that while responsible executives sidle-off out the back door, clutching attractive pay-offs, then?
King Canute at least knew he could not stem the tide while losing his treasure to the North Sea.
The Bank of England says the money is being loaned to Northern Rock at high interest rates. No-one is investing in Northern Rock. Isn't this equivalent to trading while knowingly insolvent and directors are committing an imprisonable offence by doing so?
It may be unwise to assume anything other than Mr. Adam Applegarth, that fleeing chief executive of Northern Rock, will not be named in the New Year Honours List. In fact, there may be no Honours List at all. I don't think we've the money left to hold the ceremonies.