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The FSA - an independent, non-governmental body - has fined the former deputy chief executive of Northern Rock £504,000, as well as banning him from performing any functions regarding regulated activity.
David Baker failed to enable the reporting of 1,917 loans which were omitted from the mortgage arrears figures of Northern Rock's secured loan book.
Richard Barclay, former managing credit director at the bank, was fined £140,000 for failing to make sure management information was accurate despite warning signs being noted early.
"Baker and Barclay both failed to meet the standards we require of senior individuals within FSA-regulated firms," said director of enforcement and financial crime at the FSA Margaret Cole.
If confidence in the banking sector is lost, investors may turn to alternative ways to bolster finances, such as investing in stock to increase returns.
Posted by Sara Secker
