The former Chief Executive of Northern Rock and many of his fellow directors have escaped legal action following the collapse of the bank. The nationalised bank also announced that it would not sue its auditors, PricewaterhouseCoopers. The Chairman of Northern Rock confirmed that the move had the full backing of the Government and he explained that there were “insufficient grounds” to sue the directors. No action was said to be “warranted” against the auditors. Interestingly, the two hedge funds suing over Northern Rock’s collapse, RAB Capital and SRM, are now suing the Government, not the former directors or auditors.