A clearout of Bradford & Bingley’s (B&B) board saw the chairman, deputy chairman and two directors of the nationalised bank step down, making way for Richard Pym to expand his role to executive chairman.

Chairman Rod Kent, deputy chairman Nick Cosh, directors Ian Cheshire and Steve Webster quit their posts with immediate effect, B&B said in a statement. Former Alliance & Leicester boss, Richard Pym, joined the board as chief executive a few months ago, will take the dual role of executive chairman. Other members of the board remained unchanged, the statement added.

The management changes follow the government’s decision at the end of September to take the ailing bank’s £50 billion mortgage book under public ownership and sell its savings deposits and branches to Spanish banking group Banco Santander for £612 million.

A sharp rise in funding costs had pummelled B&B as the global credit crunch pushed up the cost of wholesale borrowing. B&B, which had strayed about as far as it could from its roots as two prudent Yorkshire mutuals established in 1851, was also left in the lurch after TPG, the private equity firm, pulled out of an £ 179m investment at the last minute.

A B&B spokesman said the lender’s break-up and exit from the stock market meant it no longer needed such a large board“These changes are a reflection of post-nationalisation,” the spokesman said.

Mr Kent was made chairman of Bradford & Bingley in November 2002 and his deputy Mr Cosh, 61, was appointed in June. Non-executive directors Mr Cheshire and Mr Webster both joined the board in 2003.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive