Heads roll at NAB as PwC reveals litany of errors
(16 March 2004 – Australia) National Australia Bank has wielded the sword among board members, management and foreign exchange staff on being presented with PricewaterhouseCoopers’ review of the bank’s rogue trading losses.
Newly appointed chairman Graham Kraehe announced that he would be replaced by Peter Duncan as chairman of NAB’s Board Risk Committee.
He said former PwC managing partner John Thorn, who joined the NAB board just six months ago, would replace Catherine Walter as chairman of the Audit Committee.
Kraehe reiterated the bank’s pledge that new directors with banking experience would soon be appointed to both committees.
New chief executive officer John Stewart said in light of PwC’s findings executive general manager of Corporate & Institutional Banking, Ian Scholes would be leaving the bank. Head of Markets Division, Ron Erdos, and executive general manager of Risk Management, Chris Lewis would also be leaving.
All four foreign exchange traders directly involved in the $360 million blow-out, Luke Duffy, David Bullen, Gianni Gray and Vince Ficarra, have been dismissed as well as the traders’ supervisor Gary Dillon.
Stewart said he was concerned about PwC’s report saying certain NAB staff adopted "arrogant or aggressive attitudes towards others" and that bad news was unwelcome among senior management.
"We will continue cultural change programs within the National such as Revitalisation and Making a Difference that promote positive and transparent behaviours," Stewart said.
"We will ensure that these programs are adopted in the Markets Division of the National," he said.
"I am pleased that whistleblowers had uncovered the losses from foreign currency options trading and the National would continue to encourage and protect whistleblowers. We need more brave people that are prepared to confront bad behaviours," Stewart said.
He said former PwC managing partner John Thorn, who joined the NAB board just six months ago, would replace Catherine Walter as chairman of the Audit Committee.
Kraehe reiterated the bank’s pledge that new directors with banking experience would soon be appointed to both committees.
New chief executive officer John Stewart said in light of PwC’s findings executive general manager of Corporate & Institutional Banking, Ian Scholes would be leaving the bank. Head of Markets Division, Ron Erdos, and executive general manager of Risk Management, Chris Lewis would also be leaving.
All four foreign exchange traders directly involved in the $360 million blow-out, Luke Duffy, David Bullen, Gianni Gray and Vince Ficarra, have been dismissed as well as the traders’ supervisor Gary Dillon.
Stewart said he was concerned about PwC’s report saying certain NAB staff adopted "arrogant or aggressive attitudes towards others" and that bad news was unwelcome among senior management.
"We will continue cultural change programs within the National such as Revitalisation and Making a Difference that promote positive and transparent behaviours," Stewart said.
"We will ensure that these programs are adopted in the Markets Division of the National," he said.
"I am pleased that whistleblowers had uncovered the losses from foreign currency options trading and the National would continue to encourage and protect whistleblowers. We need more brave people that are prepared to confront bad behaviours," Stewart said.
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