Govt announces external FPC members
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The Government and the Bank of England have announced the appointment of Alastair Clark, Michael Cohrs, Donald Kohn and Sir Richard Lambert to the interim Financial Policy Committee as external members.
Kohn is a former vice chairman of the Federal Reserve and a senior fellow in the economics studies program at the Brookings Institution.
Cohrs was part of the body that made policy recommendations in the US after the stock market crash in 1987.
Lambert was director general of the Confederation of British Industry from 2006 to 2011.
Clark worked at the Bank of England as executive director for financial stability from 1997 to 2003 and then as adviser to the governor on financial issues and the City from 2003 to 2007. Bank governor Mervyn King asked Clark to return later in the year to help respond to the financial crisis.
The interim FPC is being set up to prepare for the creation of the committee ahead of legislation.
In a consultation paper released this morning the Treasury reiterated that the FPC will be responsible for “contributing to the achievement by the Bank of the financial stability objective”.
The committee will look at systemic risk coming from structural features in the markets, the distribution of risk, or unsustainable levels of leverage, debt or credit growth.
It should carry out its role in a way which does not have a “significant adverse effect” on the financial sector contributing to economic growth.
The interim FPC is to look at what tools it needs to achieve this goal and advise the Treasury on their findings.
Chief executive desginate of the Financial Conduct Authority Martin Wheatley will also be a non-voting member, as will a Treasury member.
The FCA was until today known under the working title of the Consumer Protection and Markets Authority.
Chancellor of the Exchequer George Osborne (pictured) says: “I am delighted to be able to announce these appointments to the interim FPC. The skills, expertise and experience they bring are invaluable and I am confident we have the right people to do the job.”
The other members of the interim FPC are:
- Bank of England governor Mervyn King as chair;
- Bank of England deputy governor for financial stability Paul Tucker
- Bank of England’s deputy governor for monetary policy Charlie Bean;
- FSA chief executive Hector Sants, in his capacity as future deputy governor for prudential regulation of the Bank of England and chief executive of the Prudential Regulation Authority;
- FSA chairman Adair Turner;
- Bank of England executive director for financial stability Andy Haldane; and
- Bank of England executive director for markets Paul Fisher
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