Banker working on Northern Rock salvage plan

A former boss of Abbey said today that he was working on a possible salvage plan for stricken mortgage bank Northern Rock.

Luqman Arnold – regarded as one of the City’s most experienced bankers – is preparing a proposal that does not involve the sale or break-up of the Newcastle-based business.

Mr Arnold will use a heavyweight team of banking experts to work alongside existing management in an attempt to save the ailing bank. The team – drawn from Mr Arnold’s financial services investment business, Olivant – will take a minority stake in Northern Rock.

He is best known for joining Abbey after the UK’s fifth-biggest bank dived into the red five years ago. He stabilised its performance before the business was sold to Spanish bank Santander.