Northern Rock was no-one's fault

Here’s the snippet from NR’s trading statement issued the other day announcing that there would be no legal action against either former directors or the auditors.

“A review of the conduct of the previous Board in respect of funding and liquidity has been undertaken with the assistance of external advisors, Freshfields and KPMG Forensic. The Board has concluded that there are insufficient grounds to proceed with any legal action for negligence against the former Directors, and has no intention of bringing any such action. The Board has also completed a similar review in respect of the Company’s auditors and has determined that no action is warranted.”

Of course, one can make the argument, as Applegarth did, that the events that floored NR were unforeseeable. In addition I’ve never really bought the argument that the auditors were at fault - yes they earned money from work on securitization, but what exactly does that make them responsible for? And more broadly I’m a subscriber to the “s**t happens” school of thinking. Just because something has gone wrong/failed doesn’t necessarily mean someone is to blame. But somehow it seems an odd conclusion the issue, and Unite don't like it.

Maybe it’s the Government’s fault…?