National Australia Bank chief executive Andrew Thorburn says he felt sadness and grief after discovering someone with whom he had "a longstanding personal relationship" was allegedly involved in a multi-million dollar fraud against the lender.
Thorburn, who used to run the bank's NZ subsidiary BNZ, said he would not discuss the identity of those involved - one of whom is understood to be an ex-NAB employee - but said he will back police to take whatever action they deem necessary.
Thorburn said NAB discovered the alleged corporate fraud in December and passed the findings of its own investigation to police in January.
"There have been times during my career in banking where people step over a line - and that line is what's legal and what's the law - and they commit actions for their own gain and when they're found out it always ends in a very unfortunate situation for them and their families," a visibly emotional Thorburn told reporters on Wednesday.
"In these cases there are people involved who I know and have worked with and there is a grief I have for them as well as, deeply, for the bank."
