Commonwealth Bank chair Catherine Livingstone yesterday faced a comprehensive grilling from journalists after internal candidate Matt Comyn was anointed to take the executive reins of the company from outgoing CEO, Ian Narev.Comyn, the head of CBA's retail bank since 2012, will assume executive control of the country's largest banking group on 9 April, despite market expectations that an outsider would be recruited to fix the company's cultural and compliance problems.Last year, Comyn was one of the senior executives who accepted "collective responsibility" for the bank's alleged failure to comply with anti-money laundering and counter-terrorism laws.In its statement of claim against CBA, Australia's financial intelligence regulator - Austrac - alleges the bank committed more than 50,000 violations of anti-money laundering laws.Livingstone was asked to justify Comyn's appointment and whether it would enhance the bank's reputation in the community as a bank that was trying to reform itself."Well, I think we will be judged by the outcome of our actions, and we are confident that that outcome will be positive for the bank," she said."…In terms of Matt, the level of leadership and accountability that he has shown both prior in terms of the program of action but more specifically post the lodging of the Austrac proceedings, give us the confidence that as CEO he understands the issues and is moving very quickly to address those issues. "And for the organisation that is the best outcome."Livingstone was also asked whether the appointment of an insider reflected a view of the board that nothing was really wrong with the bank."We absolutely recognise that there are aspects of our operational procedures, our operational risk management, and our compliance risk management, which have not met our own standards, let alone regulator standards or community standards, and that is absolutely the area that we are focused on," she said."And from the point of view of this appointment, we believe that to maintain the momentum in the work that is addressing those issues is absolutely crucial, and we are confident that Matt will do it."One fund manager, who requested anonymity, said the decision to go with an internal candidate might have reflected concerns among directors that a CEO with no historical ties to the company might be more inclined turn the spotlight on the board's performance during the Austrac fiasco.While institutional and retail investors said they were surprised by the board's decision, the Finance Sector Union welcomed Comyn's appointment."The CBA board has clearly made a decision that the bank's much-needed cultural change can be driven from within," said FSU national secretary, Julia Angrisano."Mr Comyn knows the bank's internal environment - warts and all - as current head of retail."We share Mr Comyn's vision, and will work with him towards those ends," she said.CLSA banking analyst Brian Johnson said Comyn was taking on the CEO role at a potentially seminal moment in the banking sector."The environment is more challenging going forward," said Johnson."We are at the end of the falling interest rate environment and he faces a big