NatWest CEO Alison Rose Resigns Amid Controversy Over Client Breach
- Shams Ul Zoha
- July 26, 2023
- 4:38 pm
WHAT YOU SHOULD KNOW
- Alison Rose, the first woman to lead a major British bank, resigned from her position as CEO of NatWest amid a controversy over the bank’s decision to close Nigel Farage’s accounts due to misalignment with the bank’s views.
- Rose was praised for her work in promoting female entrepreneurship and addressing climate change, receiving a damehood for her services to banking and advising the British government.
- Under Rose’s leadership, NatWest focused on supporting small UK businesses and households, aiming to break away from its past as the tarnished Royal Bank of Scotland (RBS) and repay the UK taxpayer for the 2008-9 financial crisis bailout.
NatWest’s departing CEO, Alison Rose, has faced numerous challenges during her tenure, including navigating the COVID-19 pandemic and market fallout. Despite being praised for her work in promoting female entrepreneurship and climate change action, her recent downfall was triggered by breaching the confidence of a client, former Brexit Party leader Nigel Farage. The decision by NatWest’s private bank Coutts to close Farage’s accounts due to misalignment with the bank’s views led to widespread criticism, ultimately costing Rose her job.
Having climbed the ranks over three decades to become the first woman to lead a major British bank, Rose’s role as an agent for change in a historically greedy sector was commendable. However, the recent controversy proved insurmountable, and her resignation was announced. Even though she initially had the backing of the board, including veteran industry figurehead Howard Davies, the pressure was too great. Rose’s departure raises questions about NatWest’s leadership at a time when Britain’s financial regulator is introducing strict rules for consumer protection.
Rose’s successor at NatWest, taking over from Ross McEwan in 2019, inherited a challenging situation. Under her supervision, the bank worked to stabilize its balance sheet, support small UK businesses and households, and distance itself from its tarnished past as the Royal Bank of Scotland (RBS). While Rose’s efforts were commendable, the bank faced struggles, including a criminal fine for failing to prevent money laundering and challenges posed by the COVID-19 pandemic. Nevertheless, the bank continued to participate in government-designed loan schemes to aid struggling businesses. Efforts to repay the UK taxpayer for the bank’s bailout during the 2008-9 global financial crisis have been hindered by stock price fluctuations, but progress has been made towards majority private ownership.
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