Public pressure
Chairman Lindsay Maxsted would also step down next year, the bank announced on Tuesday. The bank's board has faced significant pressure in the past week over the allegations. It included warnings by Australian Treasurer Josh Frydenberg that the prudential regulator had the option to disqualify executives. In a statement to the Australian Securities Exchange on Tuesday, Mr Hartzer said: "As CEO, I accept that I am ultimately accountable for everything that happens at the bank." Mr Hartzer has been chief executive since 2015. He has been given a 12-month notice period and will be paid A$2.68m (£1.4m; $1.82m) salary during that time. Westpac said chief financial officer Peter King would act as chief executive while a successor was being chosen. Mr Maxsted said the board accepted "the gravity" of the issues raised by the regulator. Last week, the board said it felt "deep distress" at the "notion that any child has been hurt by any failings by Westpac". Austrac has noted that each of the bank's alleged breaches carries a maximum a penalty of A$21m. Westpac's competitor Commonwealth Bank paid a A$700m fine for similar breaches last year. The country's scandal-plagued banking sector was recently interrogated in a royal commission - Australia's highest form of public inquiry- which found widespread wrongdoing in the industry. Mr Hartzer is the third chief executive among Australia's "big four" banks to depart since the royal commission began in 2018. Westpac's share price jumped by 1.84% during local trading following the news.DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
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