THE City watchdog said today that it had fined the former Northern Rock deputy chief executive for "misreporting" mortgage arrears figures.
David Baker, who held the senior position at the now state-owned lender between January 2004 and March 2008, was fined £504,000 by the Financial Services Authority (FSA) and banned from "performing any function in relation to any regulated activity".
The regulator said that, despite becoming aware at the beginning of 2007 that there were 1,917 loans omitted from the mortgage arrears figures, Mr Baker did not pass on the information internally and "agreed a course of action which resulted in the loans not being reported".
Northern Rock’s former managing credit director, Richard Barclay, was also fined £140,000 and banned from performing "any significant influence function" at an FSA-regulated firm.
Both men admitted the misconduct and were given a 30% discount for early settlement.