Westpac chairman, CEO to step down amidst money laundering probe

The bank is the third of Australia’s major banks to lose executives after scandals for the past year.

Two top executives of Australia’s second largest bank Westpac have stepped down in light of recent money laundering investigations, according to a Reuters report

The departures of CEO Brian Hartzer and Chairman Lindsay Maxsted make Westpac the third of Australia’s four major banks to “lose one or both its top executives following scandals in a year-and-a-half,” Reuters wrote. Hartzer had previously told Australian media that he would not step down.

Chief financial officer Peter King, who retired at the end of September, will assume the role of acting CEO on 2 December. Maxsted said he will retire by the first half of 2020.

Prime Minister Scott Morrison was among those who were pushing for Hartzer’s ouster. Health Minister Greg Hunt “welcomed” the announcement in a statement to Sky News.

In a separate press release, S&P Global Ratings called Hartzer and Maxsted’s departures as “significant,” adding that it should stabilise stakeholder discontent. They also expect that Westpac should be able to absorb such impacts at their current rating level.

Here's more from Reuters.