In a significant turn of events, NatWest CEO Alison Rose has tendered her resignation, citing a "serious error of judgment" in her discussions with a senior BBC journalist regarding former
Brexit party leader Nigel Farage's association with the bank. The decision comes amidst intense political and media scrutiny over NatWest's private bank Coutts closing Farage's accounts, partly due to a perceived misalignment of his views with the bank's stance.
The NatWest board has promptly appointed Paul Thwaite to take over as CEO, starting with an initial 12-month period, according to a company statement released. Howard Davies, the chairman of the board, acknowledged that Rose's departure was a result of mutual agreement.
The controversy further escalated when Farage criticized Rose on his TV show, declaring her unfit to lead a bank and calling for the removal of both Howard Davies and Coutts CEO Peter Flavel. He accused Rose of breaching "essential confidence" in her discussions.
Earlier, there had been uncertainty surrounding whether Rose had disclosed information about Farage's account to the BBC. However, she admitted to discussing Farage's "relationship with the bank" with BBC Business Editor Simon Jack but clarified that she did not reveal any personal financial details and only responded to a general eligibility question.
The BBC also faced criticism for its initial reporting on Farage's account situation, leading to an apology issued to Farage for an "incomplete and inaccurate" story.
Despite the controversy, NatWest's Davies had previously stated that Rose retained the full confidence of the board and announced an independent review into the matter. He hinted that Rose's bonuses might be affected at the year-end, considering the ongoing events in the decision-making process.
The Financial Conduct Authority (FCA) welcomed NatWest's statement and urged for an independent review to be conducted with sufficient resources and access to all relevant information.
In response to Rose's resignation, the UK Treasury maintained its stance, managing the government's shareholding in NatWest through UK Government Investments (UKGI) on a commercial basis.
Meanwhile, the UK's financial services minister, Andrew Griffith, is scheduled to meet with lenders to address concerns about banks closing customer accounts based on their political views, ahead of planned reforms requiring banks to provide explanations and delays for such decisions. Photo by welshbabe, Wikimedia commons.