Adam Applegarth
Encyclopedia
Adam J. Applegarth was the Chief Executive Officer
of the Gosforth
, Newcastle upon Tyne
based Northern Rock
bank, one of the first victims of the so-called subprime mortgage crisis
. The bank was subsequently nationalised
The son of a music and drama teacher, he attended Sedbergh School
and Durham University
, where he read Mathematics and Economics. He joined Northern Rock in October 1983 as a graduate trainee, becoming General Manager
in 1993, joining the Board of Directors
in 1996 and being appointed Chief Executive in 2001 at the age of 39 and remained in this position till he left the bank in December 2007.
specialist bank had rapidly expanded to become the fifth-largest mortgage provider in Britain. Applegarth has recently received extensive press attention in the UK as a result of a request for a loan from the Bank of England
that resulted in a 'run on the bank
'.
It was revealed that he was conducting an affair with a junior employee when the bank was running into trouble. She has since had his child.
In January 2009 Guardian
City editor Julia Finch identified him as one of twenty five people who were at the heart of the financial meltdown.
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
of the Gosforth
Gosforth
Gosforth is an area of Newcastle upon Tyne, Tyne and Wear, England, United Kingdom, to the north of the city centre. Gosforth constituted an urban district from 1895 to 1974, when it became part of the City of Newcastle upon Tyne. It has a population of 23,620...
, Newcastle upon Tyne
Newcastle upon Tyne
Newcastle upon Tyne is a city and metropolitan borough of Tyne and Wear, in North East England. Historically a part of Northumberland, it is situated on the north bank of the River Tyne...
based Northern Rock
Northern Rock
Northern Rock plc is a British bank, best known for becoming the first bank in 150 years to suffer a bank run after having had to approach the Bank of England for a loan facility, to replace money market funding, during the credit crisis in 2007. Having failed to find a commercial buyer for...
bank, one of the first victims of the so-called subprime mortgage crisis
Subprime mortgage crisis
The U.S. subprime mortgage crisis was one of the first indicators of the late-2000s financial crisis, characterized by a rise in subprime mortgage delinquencies and foreclosures, and the resulting decline of securities backed by said mortgages....
. The bank was subsequently nationalised
Nationalisation of Northern Rock
In 2008 the Northern Rock bank was nationalised by the British Government, due to financial problems caused by the subprime mortgage crisis...
The son of a music and drama teacher, he attended Sedbergh School
Sedbergh School
Sedbergh School is a boarding school in Sedbergh, Cumbria, for boys and girls aged 13 to 18. Nestled in the Howgill Fells, it is known for sporting sides, such as its Rugby Union 1st XV.-Background:...
and Durham University
Durham University
The University of Durham, commonly known as Durham University, is a university in Durham, England. It was founded by Act of Parliament in 1832 and granted a Royal Charter in 1837...
, where he read Mathematics and Economics. He joined Northern Rock in October 1983 as a graduate trainee, becoming General Manager
General manager
General manager is a descriptive term for certain executives in a business operation. It is also a formal title held by some business executives, most commonly in the hospitality industry.-Generic usage:...
in 1993, joining the Board of Directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
in 1996 and being appointed Chief Executive in 2001 at the age of 39 and remained in this position till he left the bank in December 2007.
Northern Rock
Under his direction, the mortgageMortgage loan
A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan...
specialist bank had rapidly expanded to become the fifth-largest mortgage provider in Britain. Applegarth has recently received extensive press attention in the UK as a result of a request for a loan from the Bank of England
Bank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world...
that resulted in a 'run on the bank
Bank run
A bank run occurs when a large number of bank customers withdraw their deposits because they believe the bank is, or might become, insolvent...
'.
It was revealed that he was conducting an affair with a junior employee when the bank was running into trouble. She has since had his child.
Crisis
Under his leadership, the Northern Rock experienced a 'run' on the bank in September 2007. This was the first time that this had happened in the UK in over 100 years. He was widely criticised by the Treasury Select Committee shortly afterwards for his handling of the crisis. He was reported to receive a £760,000 (£63,333 a month) payoff.In January 2009 Guardian
The Guardian
The Guardian, formerly known as The Manchester Guardian , is a British national daily newspaper in the Berliner format...
City editor Julia Finch identified him as one of twenty five people who were at the heart of the financial meltdown.