THE chief executive and former chairmen of Northern Rock has blamed the media coverage of the bank’s financial situation for its continued troubles.
Matt Ridley, former chairman of Northern Rock and a former journalist himself, said that without the media coverage the bank’s troubles would have been avoided – not so.
Just to recap, the Northern Rock crisis was caused by complex shifts in the money markets. The bank’s board knew about those changes as early as 1 August, but more than a month later decided to reveal the full extent of the problems. We suggest it was this, and not the media coverage which led to the banks downfall. Tip number one from Media Mentor: use the ATM. That’s acknowledge, transition and message – don’t hide from the media, it won’t work. Surely Ridley as a former journalist should have known this.
Meanwhile Adam Applegarth, the bank’s chief executive, said the media’s revelation that Northern Rock had been forced to seek emergency financial support from the Bank of England had led to widespread panic among the public and had cost his bank as much as £7 billion in withdrawals by Northern Rock customers last month. He specifically referred to BBC reports which he said “caused immense difficulties.”
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