Natwest chair Howard Davies WILL stay on after Nigel Farage Coutts scandal
Natwest chair Howard Davies said he would stay on as boss of the bank’s board while the lender tries to recover from the scandal involving Nigel Farage’s Coutts bank account.
Speaking to reporters after the bank published its results, Davies said “my intention is to continue to lead the board and ensure that the bank remains sound stable and able to support our 19 million customers”.
He explained that the board was not involved in either of the two underlying problems that had caused the row.
“There are two underlying questions here for which the bank has been criticised. One is the handling of Nigel Farage’s accounts and there the board was not involved, as indeed it should not have been”.
“The second was the way in which that information was discussed with a journalist and again the board was absolutely not involved in that. So I don’t think that there are any grounds to criticise the board for those two underlying problems,” Davies said.
He said that the board had the support of its “main shareholder and of the regulators”.
The lender has been engulfed in turmoil since it was revealed Nigel Farage’s account was closed, partially because of his political opinions. Chief executive Alison Rose resigned just hours after the board backed her while boss of private bank Coutts stepped down yesterday.
Davies noted that Natwest’s initial decision to back Rose was made solely by the board, although he consulted with key stakeholders.
“The statement was the board statement and my statement, and I am not seeking to associate anybody else with that. But as you’d expect, clearly, I did take soundings to see what people’s opinions were,” Davies said.
However, he then noted that the government took a different view on Rose’s position, making it “too difficult” for her to continue in those circumstances.
Following the furore, Natwest has announced a review into account closures which will be led by law firm Travers Smith.
The review will examine the decision to close Farage’s account and whether the bank leaked confidential information. The results will be reported within four to six weeks.
It will also consider Coutts’ account closures over the previous 24 months, with the results expected by the end of October.