Chairman of troubled British lender Northern Rock steps down

Matt Ridley, chairman of troubled British lender Northern Rock, which was the target last month of the country''s first bank run in 140 years, has resigned. Former Standard Chartered chairman Bryan Sanderson will replace him.

Ridley had offered to step down in September after Northern Rock ran into trouble, as a result of the global market turmoil that had started earlier this year with bad mortgage loans in the United States. The Bank of England lent Northern Rock more than £13 billion ($26 billion) in emergency loans at a penalty rate over the last few weeks, so it could survive the run on the bank.

Northern Rock''s management had asked Ridley to remain in his role at the bank until new funding arrangements were in place but said on Friday 19 October that "the time is right to accept his resignation". The bank also said this week that it had received several proposals, which could lead to a takeover.

Ridley testified before a parliamentary committee about why the bank had ended up in such a difficult situation, with hundreds of customers standing in line outside branches to withdraw their savings. Members of parliament blamed Ridley, 49, and other Northern Rock directors for harming the reputation of the British banking industry by failing to incorporate any risk mitigation measures into the bank''s strategy.

Ridley kept an extremely low profile throughout the turmoil. His appearance at the parliamentary hearing was his first public appearance since Northern Rock''s troubles erupted. Better known as a zoologist and science writer, Ridley took over as chairman of the bank in 2004.