Northern Rock boss quits to head banking start-up

Northern Rock chief executive Gary Hoffman has stepped down from the nationalised bank in order to head up a new banking start-up founded by Lord Levene, former Lloyd's of London insurance chairman.

Hoffman, who has run the bank since 2008, will be replaced by Ron Sandler, Northern Rock's chairman. Sandler led the failed lender in the months following its multi-billion pound bailout by the state in 2008.

Hoffman is leaving to run NBNK which under Levene raised £50 million earlier this year with the aim of buying up businesses being sold off by other banks.

According to Northern Rock, NBNK has committed not to make a bid for the bank in the next 12 months. Hoffman will not start his new job until 30 April, 2011. 

Hoffman said in a statement that Northern Rock had achieved a great deal in the last couple of years and that it was time for him ‘to take on a new challenge.’

Sandler expressed his gratitude for Hoffman's help in the 'rehabilitation' of Northern Rock. He added: ‘I will resume my role as executive chairman for the foreseeable future and, along with a strong board and executive management team, provide the continuity of leadership in the bank at this important time.’