NatWest Bank CEO Departs Amid Controversy Surrounding Nigel Farage's Bank Account
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| NatWest Bank CEO Departs Amid Controversy Surrounding Nigel Farage's Bank Account (Image Source: apnews.com) |
LONDON (AP) — In a surprising turn of events, Alison Rose, the Chief Executive Officer of NatWest, one of Britain's major banking institutions, has stepped down from her position on Wednesday following a breach of client confidentiality involving the prominent political figure, Nigel Farage. The incident revolved around Rose divulging personal information about Farage to a journalist.
The bank's announcement stated that Alison Rose's departure was agreed upon "mutually." This declaration came as a shock to many, especially since NatWest had just recently expressed complete confidence in Rose's leadership. Notably, she had made history as the first woman to head one of Britain's four largest banks.
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Commenting on the situation, Howard Davies, the chairman of NatWest, expressed his sorrow, describing it as a somber moment for the institution. The impact of Rose's departure was immediately felt, as NatWest's shares experienced a 3% decline during early trading on the London Stock Exchange on Wednesday.
Rose's departure unfolded following a series of headlines ignited by Nigel Farage's outcry over the closure of his bank account, alleging that the banking group was motivated by a disagreement with his political stance.
Nigel Farage, a prominent right-wing talk show presenter and former leader of the pro-Brexit U.K. Independence Party, claimed that his account with the private bank Coutts, which is owned by NatWest Group, was unjustly terminated.
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A BBC report, citing an anonymous source within the bank, suggested that the account closure was due to Farage's failure to meet Coutts' borrowing requirement of £1 million ($1.3 million).
To counter these claims, Farage publicly disclosed documents obtained from the bank, revealing discussions about his financial dealings and the potential "reputational damage" associated with retaining him as a customer.
These internal documents allegedly referred to Farage as "xenophobic and racist" and characterized him as a "disingenuous grifter" in the eyes of many.
Adept at attracting attention and generating controversy, Farage accused the bank of suppressing his freedom of speech, garnering support from some members of the Conservative government who echoed his concerns.
Coutts, which has maintained its headquarters on The Strand in central London for over three centuries, prides itself on providing services to an "exclusive network" of customers, including members of Britain's royal family.
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During his political career, Nigel Farage faced repeated unsuccessful attempts to be elected to Parliament.
However, he played a significant role in the Brexit movement, contributing to Britain's exit from the European Union by fueling concerns about immigration.
In the 2016 referendum, voters narrowly supported Brexit, leading to the UK's departure from the EU in 2020.
Recently, there was a development in the controversy surrounding Nigel Farage's bank account. The CEO of NatWest Bank, Rose, was ousted from her position after admitting that she was the anonymous source behind an inaccurate BBC report.
The report had falsely claimed that the decision to close Farage's account was purely a commercial matter. Rose offered an apology to Farage and acknowledged her serious error in judgment for speaking to a reporter about the issue.
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It's worth noting that NatWest Bank had previously received a government bailout during the global financial crisis of 2008 and remains nearly 40% owned by British taxpayers.
Coutts, another prominent bank headquartered in central London for over 300 years, prides itself on catering to an exclusive clientele, including members of Britain's royal family.
In response to concerns related to customers' lawful freedom of expression, the banking minister, Andrew Griffith, is scheduled to hold a meeting with Britain's largest banks.
Last week, the UK's Treasury announced stricter rules for banks regarding the closure of customers' accounts.
Under these new rules, banks will be required to provide an explanation for closing someone's account and must offer 90 days' notice before doing so, which was not previously mandatory.
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In a bid to enhance transparency for their customers, certain changes have been implemented, ensuring that banking firms retain the authority to close accounts of individuals perceived as posing a reputational or political risk.
Nigel Farage expressed approval for Rose's departure but emphasized the need for comprehensive reforms in banking laws and advocated for the removal of more NatWest board members.
"We provided financial assistance during their challenging times, and in return, they've been shutting down our branches and terminating personal and business accounts on a massive scale," he remarked. "Real and substantial change is imperative, and I'll persistently advocate for it."
Under British law, banks are obligated to exercise additional scrutiny on "politically exposed persons" like politicians and diplomats to prevent money laundering. Consequently, several U.K. lawmakers have faced rejections when applying for bank accounts.
Policing Minister Chris Philp acknowledged that these regulations were designed to prevent foreign government members who obtained money dishonestly from using the U.K. banking system for money laundering.
However, he acknowledged that they may have been enforced with excessive zeal.
"While the Nigel Farage case is an extreme example, it's not an isolated one," he remarked.
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