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Applesh1t Buying Up Crap From Govt. On The Cheap

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http://business.timesonline.co.uk/tol/busi...icle6856135.ece

Adam Applegarth, the former chief executive of Northern Rock, the nationalised bank, has landed a job with an American private equity firm, The Times has learnt.

Mr Applegarth has joined Apollo Management as a senior adviser to its European fund, which invests in loans that have turned sour. The appointment marks Mr Applegarth’s return to the business world after an extended period in the wilderness.

He quit Northern Rock in December 2007, two months before the Newcastle-based lender was nationalised, departing with an £840,000 payoff in salary and pension.

Since leaving Northern Rock Mr Applegarth has been spotted playing cricket for Sunderland, his local club, but, otherwise, he has kept a low profile. He was rumoured to be looking for jobs in the United States but did not appear to have secured a position until now.

Apollo, which is based in New York, specialises in distressed-debt investments. It has raised €1 billion (£915 million) to buy large pools of nonperforming loans at large discounts.The European fund focuses on Britain, Germany and Spain.

Bankers said yesterday that Mr Applegarth could use his intimate knowledge of Northern Rock’s mortgage book to steer Apollo on a possible acquisition of its bad loans. The Government plans to split Northern Rock into a “good†bank for new lending and a “bad†bank full of its impaired loans.

Mr Applegarth could also give advice on an acquisition of the mortgage book of Bradford & Bingley, which was nationalised last year.

As an adviser rather than as a full-time director, Mr Applegarth has not had to be approved by the Financial Services Authority (FSA) for the role at Apollo. An Apollo spokesman confirmed Mr Applegarth’s appointment.

Northern Rock was the first UK bank this century to suffer a run on its deposits after it emerged in September 2007 that it was being kept alive with cash injections from the Bank of England. After pumping in billions of pounds of extra funding over several months to try to orchestrate a rescue takeover of the bank, the Government gave up early last year and took it into public ownership.

By raising his head above the parapet, Mr Applegarth may attract the ire of politicians. Gordon Brown turned up the heat on bankers in his speech at the Labour Party conference on Tuesday by giving warning that individuals deemed to be negligent would be disqualified.

Mr Applegarth famously declared that the “world changed†on August 9, 2007, when the credit markets froze. The development had dire consequences for Northern Rock because it was heavily reliant on funds from the wholesale markets.

At the time Mr Applegarth was castigated for blowing up Northern Rock, which had grown rapidly and was, by the first half of 2007, writing a fifth of new home loans.

Since then much larger banks have been brought to the brink of collapse, including Royal Bank of Scotland and HBOS.

Mr Applegarth is understood to have known the Apollo team for several years. Founded by Leon Black, Apollo is best known in the UK for its £1 billion acquisition of Countrywide, the estate agency chain, in May 2007, at the peak of housing boom, after outbidding 3i, a rival private equity group.

I guess he knows where all the 'best' crap is hidden - otherwise he wouldn't be of much use to Apollo would he?

How are these people allowed to serve in any capacity in the financial services industry after causing such damage? Let alone cherry picking the best deals and making themselves another fortune in the process?

Not a single senior banker has been charged with any offence. They just take their stash and move on to the next scam with government and regulatory approval. :angry:

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