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| National Australia Bank chief executive Andrew Thorburn has resigned after a major inquiry into the scandal-plagued banking sector singled out NAB (AFP Photo/PETER PARKS) |
National
Australia Bank announced Thursday its chairman and chief executive were
stepping down just days after a major inquiry into the country's
scandal-plagued finance sector singled out the bank's leadership for criticism.
NAB chair
Ken Henry said he would soon retire, while CEO Andrew Thorburn announced his
resignation, both saying they were "deeply sorry" in the wake of a
damning report detailing rampant customer abuse in the industry.
"As
CEO, I understand accountability. I have always sought to act in the best
interests of the bank and customers and I know that I have always acted with
integrity," Thorburn, who will leave at the end of the month, said in a
statement.
"However,
I recognise there is a desire for change. As a result, I spoke with the Board
and offered to step down as CEO, and they have accepted my offer."
On Monday,
the Royal Commission in the sector handed down its final report calling for
rules to be revised, and for more regulation and oversight of the sector,
including Australia's "big four" banks.
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The
year-long investigation into Australia's banks revealed rampant misconduct
and
poor treatment of customers (AFP Photo/William WEST)
|
The
year-long investigation, which revealed rampant misconduct and poor treatment
of customers, referred more than 20 cases to regulators for possible
prosecution.
The big
banks were sharply criticised, with Henry and Thorburn singled out for being
unwilling to acknowledge their organisation's mistakes.
"Having
heard from both the CEO, Mr Thorburn, and the Chair, Dr Henry, I am not as
confident as I would wish to be that the lessons of the past have been
learned," said the inquiry's commissioner, former High Court judge Kenneth
Hayne.
Henry said
he would retire from the board when a new CEO is appointed.
"I am
enormously proud of what the bank has achieved and equally disappointed about
what the Royal Commission has brought to light in areas where we have not met
customer expectations," he said. "Andrew and I are deeply
sorry for this."
NAB put a
halt on trading about 30 minutes before the ASX closed Thursday. It was
up 1.3 percent to 24.93 at the time.
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