Chairman of Australia's biggest bank quits

The chairman of Australia’s biggest bank resigned today after a multi-million dollar foreign currency trading scandal rocked the institution.

The decision by National Australia Bank Chairman Charles Allen to leave the company came just two weeks after Chief Executive Frank Cicutto quit in the wake of rogue trades that ran up a loss of €229.2m.

Allen said it was the right time for him to step down now that Cicutto’s replacement, John Stewart, was firmly in place.

“I believe that this action is in the best interests of the bank and its shareholders,” Allen said in a statement in Melbourne.

Allen will be replaced by board member Graham Kraehe, the former chief executive of wine giant Southcorp.

Kraehe said his immediate focus would be on dealing with the scandal, finding new board members and creating a more “open and transparent” culture at the bank.

Federal police and two independent watchdogs are investigating the rogue currency trades made by four of the bank’s dealers. They were suspended last month by the bank, but no charges have yet been filed.