NatWest CEO Steps Down Over Leaked Account Closure to BBC
Alison Rose, the CEO of NatWest, one of the largest banks in the United Kingdom, has announced her resignation following the admission that she leaked information about the closure of Brexit campaigner Nigel Farage’s accounts to a BBC journalist. Rose, who has been with NatWest for over three decades and served as CEO for nearly four years, is stepping down as the UK government tightens regulations on banks concerning the unfair closure of accounts for political reasons.
The UK government currently holds a 39% stake in NatWest after bailing out its former parent company, Royal Bank of Scotland, during the 2008 financial crisis. Rose’s resignation comes amidst increasing concerns that bank CEOs are terminating accounts based on customers’ political beliefs.
Farage, a controversial figure in British politics known for his association with former US President Donald Trump, disclosed last month that a major UK bank had dropped him as a customer. Subsequent media reports revealed that the bank in question was Coutts, a wealth management division of NatWest. Farage claimed that his political views were the reason behind the closure of his account.
Initially, the BBC reported that a senior source at the bank had informed them that Farage’s accounts were closed for commercial reasons. However, Farage obtained a copy of an internal report from the bank confirming that his political views played a role in their decision. The report, which the bank did not dispute, included references to Farage’s social and political beliefs, highlighting his stance on immigration, Black Lives Matter, and other subjects.
In her statement announcing her resignation, Rose acknowledged her error of judgment in discussing Farage’s relationship with the bank. Although she confirmed to BBC Business Editor Simon Jack that Farage was a Coutts customer, she maintained that she did not disclose any personal financial details. Rose had directed Jack to the eligibility criteria published on the Coutts website, which outline the minimum requirements for maintaining an account with the bank.
Following Rose’s resignation, NatWest announced that Coutts CEO Peter Flavel would also be stepping down. Rose stated that she had not been involved in the decision to terminate Farage’s accounts, asserting that it was made by Coutts for commercial reasons.
In response to the controversy, the UK Treasury has proposed new rules that will oblige banks to delay account closures and explicitly state the reasons behind terminating an account. This move aims to protect lawful freedom of expression for customers accessing banking services and prevent banks from becoming moral arbiters by taking political stances.
While the resignation of the NatWest CEO demonstrates accountability and recognizes the need to address the concerns raised, the incident raises questions about the extent to which political beliefs should influence business decisions. The fallout from this episode may prompt a broader discussion about the responsibilities and limitations of banks when it comes to customer accounts and political affiliations.
NatWest’s search for a permanent replacement for Alison Rose is underway, and in the meantime, Paul Thwaite, currently CEO of the bank’s commercial and institutional business, will assume the role.
In conclusion, Alison Rose’s resignation as NatWest CEO underscores the ongoing debate surrounding the closure of accounts for political reasons. The incident involving Nigel Farage may serve as a catalyst for new regulations that aim to strike a balance between upholding freedom of expression and ensuring banks do not discriminate based on political beliefs.
