The Lib Dem’s John Thurso is on the offensive. “There is nothing you could have done to mitigate this risk?” he asks in disbelief.
Applegarth has been sticking to his unforeseen, global freezing line, indicating that others also suffered.
“None of them have lost their brand; none of them are up for sale; none of them are frankly destroyed,” thunders Thurso. We sense he’s not impressed by the Rock executives’ performance.
McFall moves the questioning on – asking about Northern Rock’s position on August 9th, just before it informed the FSA that there was trouble afoot.
Applegarth answers that the bank was still funding itself through to September 14th, but that the duration had come down. In August, it had two to three months funding, he says. The facility from the Bank was a “backstop.”
McFall is unimpressed – Applegarth is dispatched to prepare a note on this subject for the committee.
Peter Viggers, Conservative MP, asks a big question. “Who is running Northern Rock?” The board, comes the broad answer.
But Viggers cites experience where management teams were bound “hand and foot” to prevent them making decisions without the consent of the authorities. Had such a structure been put in place at the Rock given the £13bn of Bank money they now have in their possession?
“I wouldn’t say a formal structure,” answers Ridley, though he makes noises about “close consultation.” And it’s another piece of homework for the panel in the form of a “note” for the committee.
The hearing continues, but Helen Thomas has been refused fresh access to the proceedings…. there’s another live blog going on here.