New NAB boss threatens to wield broom
(10 February 2004 – Australia) New National Australia Bank boss John Stewart has said the inquiry into the bank’s "unauthorised" foreign exchange trading is likely to reveal that people were "asleep on their watch".
Speaking on commercial television, Stewart said the bank had also suffered from a lack of banking expertise among the board of directors, a situation NAB was "actively" responding to.
"I don’t think it’s incompetent. I don’t think it’s not performing either but it would be more helpful if we had that banking expertise on the board," he said.
Since arriving in Australia, Stewart has impressed investors and media with his forthright and open approach to discussing the bank’s current problems – a stark contrast to the strategy employed by NAB’s former head Frank Cicutto, who resigned last week.
Stewart said the bank would look to reduce costs by reducing the number of non-profit generating staff.
"What is for sure is that costs often walk around on two legs. What you have to do is to make sure that you are properly staffed and people are doing the right job," he said.
Stewart said the PricewaterhouseCoopers’ investigation into the rogue trading that led to $360 million losses would uncover the truth of the bank’s risk management failure. However, he said he suspected the investigation would show people did things "they shouldn’t have done".
"I don’t think it’s incompetent. I don’t think it’s not performing either but it would be more helpful if we had that banking expertise on the board," he said.
Since arriving in Australia, Stewart has impressed investors and media with his forthright and open approach to discussing the bank’s current problems – a stark contrast to the strategy employed by NAB’s former head Frank Cicutto, who resigned last week.
Stewart said the bank would look to reduce costs by reducing the number of non-profit generating staff.
"What is for sure is that costs often walk around on two legs. What you have to do is to make sure that you are properly staffed and people are doing the right job," he said.
Stewart said the PricewaterhouseCoopers’ investigation into the rogue trading that led to $360 million losses would uncover the truth of the bank’s risk management failure. However, he said he suspected the investigation would show people did things "they shouldn’t have done".
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