NAB names new chairman

National Australia Bank (NAB) has appointed Graham Kraehe as chairman following the resignation of Charles Allen from the bank. The move comes just over a month after the bank announced that it was set to lose an initial estimate of A$180 million from unauthorised foreign exchange options trading. This figure was revised upwards to A$360 million ($277.4 million) in pre-tax losses following an internal investigation by NAB at the end of January.

“I respect Charles Allen’s decision to step aside at this time. The National is a first-rate financial institution with strong performance and growth prospects,” said Kraehe in a statement. “In the immediate term my focus will be on dealing with the foreign currency options matter in an open and transparent way, accelerating further renewal of the Board, and creating a more open and transparent culture.”

Kraehe has worked as a chief executive in four companies in the wine, automotive and diversified industrial sectors, including Southcorp Holdings. Since retiring from his chief executive responsibilities, he has been a non-executive director of Brambles, News Corporation and founding chairman of BlueScope Steel (formerly BHP Steel), where he attained further exposure to international business and best-practice governance trends in Australia, the UK and the US.