NAB brand battering could lead to churn, Stewart admits
(30 March 2004 – Australia) New National Australia Bank chief executive John Stewart has admitted that the foreign currency trading scandal and subsequent boardroom wrangling may undermine the bank’s image.
The bank has been embroiled in a very public boardroom spat, involving director and former audit committee head, Catherine Walter, and the rest of the NAB board. Walter has said she will stand down providing all current, non-executive directors also end their terms.
Walter was asked to resign her post following criticism in both the PricewaterhouseCoopers and Australian Prudential Regulation Authority’s reports into NAB’s risk management breakdown in foreign currency division.
"Last week I said it was time for the board to start behaving the way a great bank’s shareholders, employees and customers were entitled to expect," Walter said in a statement.
"My colleagues can demonstrate that they accept that responsibility by supporting these resolutions."
At the time of writing NAB said it would consider Walter’s list of demands.
Stewart told the Australian media that NAB’s $360 million foreign exchange losses precipitated the "biggest reputational event for any business in Australia for a long time".
He said there was little sign of customers deserting the bank in the wake of a turbulent period that saw former boss Frank Cicutto leave the bank after 37 years and several other senior management sackings. However, he said he expected there would be some churn in customers.
Walter was asked to resign her post following criticism in both the PricewaterhouseCoopers and Australian Prudential Regulation Authority’s reports into NAB’s risk management breakdown in foreign currency division.
"Last week I said it was time for the board to start behaving the way a great bank’s shareholders, employees and customers were entitled to expect," Walter said in a statement.
"My colleagues can demonstrate that they accept that responsibility by supporting these resolutions."
At the time of writing NAB said it would consider Walter’s list of demands.
Stewart told the Australian media that NAB’s $360 million foreign exchange losses precipitated the "biggest reputational event for any business in Australia for a long time".
He said there was little sign of customers deserting the bank in the wake of a turbulent period that saw former boss Frank Cicutto leave the bank after 37 years and several other senior management sackings. However, he said he expected there would be some churn in customers.
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