What should Northern Rock do next?

So, you have been appointed the chief executive of Northern Rock. Congratulations. But what do you do now?

The preferred alternative of the current management seems to be to repeat reassurances that many depositors refuse to accept and then wait for the share price to drop so low that Northern Rock is bought by a big bank.

This involves just sitting there as depositors, one after the other, conclude that they may as well take out their money. After all, the risk is all one way. Why not close your account?

This may, in the end, be the only thing they can do. But I must say, if I were the CEO or their PR agency, I wouldn't feel satisfied.

Here are some things they could do:

Board members queue up outside a branch to put in their own assets into Northern Rock accounts.

Provide a one-off lump sum to all savers, payable if their money is in their account in, say, three months time

A publicity campaign using ordinary savers, "people like you", who are sticking with the Northern Rock.

Are they doing these things? It seems striking that they are so passive.

Comments

[Guido Fawkes]

Sack Derek Wanless for a start. He chaired the Bank's Risk and Audit committee.

It is over for Northern Rock. CEO Guido would look for a trade buyer.

[Kate]

'Passive'?! Probably because they're busy trying to persuade one of the other major banks to enter into a takeover. Do you REALLY think that any of your suggested steps would be seen by Northern Rock customers as anything other than a sad publicity stunt, far too late to make a difference?