NatWest CEO Steps Down Following Controversy Over Nigel Farage’s Account Closure
Alison Rose, the chief executive of NatWest bank, has resigned after admitting a serious error of judgment in discussing the banking affairs of prominent Brexiteer Nigel Farage with a reporter. Farage, the former leader of the Brexit Party and UKIP, had complained about the closure of his account with Coutts, a subsidiary of NatWest. He claimed that his account was closed due to his political views. However, the BBC later apologized for a report suggesting that Farage’s account was closed because he lacked sufficient funds.
Following Rose’s departure, Farage called for the entire NatWest board to resign, highlighting the importance of client confidentiality in banking. Pressure for Rose’s resignation reportedly came from the British government, which owns 39 percent of NatWest. NatWest, previously known as Royal Bank of Scotland, was rescued with £45.5 billion of taxpayer cash after the 2008 financial crisis.
Rose, the first female CEO of a major UK bank, rebranded NatWest following her appointment in 2019. However, her tenure ended in controversy after she admitted to being the source for the BBC story and acknowledged her error in discussing Farage’s relationship with the bank. The NatWest board initially backed Rose but she ultimately decided to step down.
The board has appointed Paul Thwaite, the current CEO of the commercial and institutional business, as Rose’s replacement for an initial period of one year. NatWest plans to initiate a further process to appoint a permanent successor.
Farage received a 40-page report on the closure of his account, which he claims cited Brexit and his support for former US President Donald Trump as reasons for his account’s closure. He stated that he did not align with the bank’s purpose and values and was labeled as xenophobic and racist in the report.
In her statement announcing her departure, Rose expressed pride in the bank’s progress in supporting individuals, families, and businesses across the UK. She thanked her colleagues for their contributions to the bank’s success.
The news of Rose’s resignation highlights the challenges faced by financial institutions in balancing client confidentiality, commercial decisions, and political sensitivities. The controversy surrounding Farage’s account closure raises questions about the relationship between banking and politics, as well as the influence of governments in the operations of publicly-owned banks like NatWest.
The departure of NatWest’s CEO comes at a critical time for the bank as it seeks to navigate the ongoing economic impact of Brexit and the wider challenges facing the banking sector.
