The questions are flying about the Rock’s claimed slowdown in its allegedly over-aggro business model.
Adam Applegarth argues that the Rock would have ended the year with asset growth of 16 to 17 per cent. And that’s not aggressive?, comes the Treasury committee’s somewhat incredulous response. “Maybe I’ve just been running boring businesses” wonders Labour MP Mark Todd.
It was, says Applegarth, “noticeably slower” than the growth of 20 to 22 per cent in previous years – and the slowdown in the pipeline of new business was something the bank took some criticism for at the half year stage. Confusion repeatedly reigns about gross versus net numbers, market share versus net new lending.
The Crock’s chief executive admits that during stress testing, amid multiple tests required as part of Basel II, there was no testing of “what was deemed implausible” – the rapid, long terms freezing of global markets.
Todd wonders if Bank of England governor Mervyn King had a “moral message” for the Northern Rock executives in his testimony. Applegarth points out that the lender of last resort facility was there for “solvent and viable” businesses.
“What severely hammered us was the retail run on the bank that followed that,” he adds.
The hearing continues.