NatWest admits 'serious failings' in Nigel Farage incident; shares slide after earnings

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A review into the closure of Brexit figurehead Nigel Farage's account found 'potential regulatory breaches and a number of areas for improvement.'

NatWest shares fell on Friday, as the British bank said it had made "serious failings" in its handling of politician Nigel Farage's bank account, and a U.K. financial regulator found potential breaches.The logo of NatWest, a retail unit of RBS, outside a bank branch in London, U.K., on Tuesday, June 26, 2012.

The U.K.'s Financial Conduct Authority on Friday announced that its report into NatWest Group and its wealth management subsidiary Coutts found "potential regulatory breaches and a number of areas for improvement."how they consider account closures and customer complaints, along with the effectiveness of governance mechanisms. The report was commissioned by NatWest, which is 39% state-owned.

NatWest Group Chairman Howard Davies said the report "sets out a number of serious failings in the treatment of Mr Farage." Davies said the findings showed a "lawful basis for the exit decision" but "clear shortcomings in how it was reached as well as failures in how we communicated with him and in relation to client confidentiality."on Friday, posting pre-tax profit of £1.33 billion coming in roughly in-line with analyst estimates, according to Reuters.

The bank said that it expects a margin for the full-year of "greater than 3%," following a prior forecast of "around 3.15%."

 

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European stocks mixed as investors assess global data, earnings; NatWest down 12%European stocks were mixed Friday, with earnings and the state of the global economy keeping sentiment on edge.
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