NatWest Bank’s CEO Departs Amid Controversy over Nigel Farage’s Bank Account

The Chief Executive Officer of NatWest, one of the most prominent banks in the United Kingdom, resigned from her position on Wednesday due to controversy stemming from the disclosure of personal client information. This information was about Nigel Farage, a well-known populist politician, and was shared with a journalist.

NatWest announced that Alison Rose was departing “by mutual agreement.” This unexpected announcement was made early Wednesday morning, shortly after NatWest expressed complete trust in their CEO, who was the first woman to helm any of Britain’s four leading banks.

“It’s a regrettable moment,” NatWest’s chairman, Howard Davies, expressed. This event negatively impacted NatWest’s shares, causing a 3% drop in early Wednesday trading on the London Stock Exchange.

Rose’s exit was spurred by a series of news reports ignited by Farage’s grievance that his bank account was closed because of his political views which the banking group didn’t align with.

Farage, a right-wing talk show host and previous leader of the pro-Brexit UK Independence Party, argued that his account with Coutts, a private bank owned by NatWest Group, was unjustly closed.

An article from the BBC, using an anonymous source at the bank, claimed that the account was closed because Farage couldn’t meet the 1 million pound ($1.3 million) borrowing requirement set by Coutts.

Subsequently, Farage presented documents he obtained from the bank showing that not only were his finances discussed by officials, but also the potential “reputational damage” of maintaining him as a client. The documents labeled Farage as “xenophobic and racist” and perceived by many as “a dishonest manipulator.”

Alleging that the bank infringed upon his freedom of speech, Farage gained support from some members of the Conservative government who echoed his concerns.

Coutts, a long-standing institution located on The Strand in central London, touts its customer base, including Britain’s royal family, as part of “an exclusive network.”

Despite his failure to win a seat in Parliament, Farage played a significant role in leading Britain’s exit from the European Union, largely by fanning concerns about immigration.

On Tuesday evening, Rose apologized to Farage and confessed to being the anonymous source behind the erroneous BBC story stating that the decision to close Farage’s account was purely commercial. She admitted that talking to a reporter had been a “grave lapse in judgement.”

NatWest, which needed government support during the 2008 global financial crisis and is still almost 40% owned by British taxpayers, is now under scrutiny.

Coutts, who boasts of an “exclusive network” including Britain’s royal family, has been based on The Strand in central London for over three centuries.

Andrew Griffith, the banking minister, plans to meet with Britain’s leading banks on Wednesday to discuss issues surrounding customers’ “lawful freedom of expression.”

The UK Treasury revealed stricter rules for banks closing customer accounts last week. Banks will now have to provide an explanation for account closures, giving a 90-day notice, a provision not previously required.

These changes aim to increase transparency for customers but won’t revoke a bank’s right to close accounts perceived as reputational or political risks.

Farage welcomed Rose’s resignation, however, he stated his desire for a significant shift in banking laws and further changes to the NatWest board.

“They have our bailout money, and yet they close our branches and a vast number of our personal and business accounts,” Farage commented. “We need a significant change here and I will continue to advocate for it.”

In the UK, banks are required by law to perform extra scrutiny on “politically exposed persons,” such as politicians and diplomats, as a preventive measure against money laundering. Many UK lawmakers report being denied bank accounts.

Policing Minister Chris Philp said that the rules are intended to stop members of foreign governments from illegally using the UK banking system, but he admitted that these rules have been “applied excessively.”

“The Nigel Farage case is an extreme example, but unfortunately, it’s not the only one,” he stated.

Frequently Asked Questions (FAQs) about Alison Rose Resignation

More about Alison Rose Resignation

• NatWest
• Nigel Farage
• UK Independence Party
• BBC News
• UK Treasury
• 2008 Global Financial Crisis
• Brexit