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Shock choice Mark Carney named as new Bank of England governor

Bank of England BoE Bank 480

Bank of Canada governor Mark Carney will succeed Sir Mervyn King as Bank of England governor when he steps down next June.

Carney has been Bank of Canada governor since February 2008 and also serves as chairman of the Financial Stability Board. He also worked for 13 years with Goldman Sachs, and acted as senior associate deputy minister of finance before becoming Bank of Canada governor.

He has a bachelor’s degree in economics from Harvard University, and a masters and a doctorate in economics from Oxford University.

For the first time in history the job of governor was publicly advertised with the Treasury looking for a candidate with experience of working in a central bank or similar institution, or at a senior level in a major bank or financial institution.

All shortlisted candidates went through a rigorous interview process chaired by permanent secretary to the Treasury Sir Nicholas Macpherson. The frontrunners included deputy governor for financial stability Paul Tucker, FSA chairman Lord Adair Turner, former cabinet secretary Sir Gus O’Donnell and economist Sir John Vickers.

The new governor will have responsibility for financial stability, monetary policy and financial regulation when sweeping reforms come into force next April.

The Financial Conduct Authority and Prudential Regulation Authority will come directly under the remit of the new boss.

Chancellor George Osborne says: “Mark Carney is the outstanding candidate to be governor of the Bank of England and help steer Britain through these difficult economic times. He has done a brilliant job for the Canadian economy as its central bank governor, avoiding big bail outs and securing growth.

“Along with its central role in monetary policy, this Government has put the Bank of England back in charge of regulating our financial system so that we do not repeat the mistakes of the last decade. Mark Carney is the perfect candidate to take charge of the Bank as it takes on these vital new responsibilities. He will bring strong leadership and a fresh new perspective.”

Carney plans to serve as Bank governor for five years.

Bank deputy governor for monetary stability Charlie Bean has also agreed to stay on for an extra year from 1 July 2013 to help with the transition to a new governor and powers.

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Comments

There are 11 comments at the moment, we would love to hear your opinion too.

  1. Thank god its not Turner!

  2. Hold on !! who is it ? Tucker or Carney

  3. Hear, hear!

    Nothing could have been worse than yet another self-serving failed regulator who demonstrated no practical understanding of how the banks or regulation works. Look at his achievement whilst regulating the banks. Spectacular!

  4. @ Nick 3.41 – Even Sir Nicolas understands what a total c*ck up Lord Turner and the FSA made of regulating the industry so I dont think he was ever going to be a serious candidate. But liek you said – Thank God

  5. Apart from the fact that it could have been Turner or even Sants, either of which would have been complete disaster, was this such a shock appointment when looking closely at it?

    This could be Osborne’s masterstroke, appointing someone from well outside the UK banking culture of recent times and someone who has presided over one of the World’s most stable and strong banks and economies, with a track record to boot…not really rocket science is it?

    Could be just the guy to put the banking miscreants in this country in their place…about time too….interesting future….

  6. Like Nick, I am warmed by the fact that the smooth-talking oaf Turner did not achieve his ambition.

    Let us hope that Sants is also denied his lifetime aim of a knighthood

  7. The job was advertised for the first time in it’s history, but they ended up head hunting someone from another country. By his own admission he never applied for the job! It’s shameful that we can’t produce a suitably qualified candidate from within our own ranks!!! Let’s hope he’s given a free hand, and isn’t afraid to clear out the dross that’s presided over the worst banking crisis in history. Good luck!

  8. It’s obvious that it would have been a stupid mistake to let anybody have the job who was in any way linked to the Libor scandal or the UK banking collapse.

  9. Anyone from this country who was on the shortlist probably has history connected with the credit crunch or some major mis-selling problem.

    The BoE, FSA, Treasury and big bank senior staff apparently didn’t see the credit crunch coming and if they did, had their feet too far in the trough to bother to do anything about it, so a Canadian with a good track record is probably preferable.

    Good luck to him.

  10. I was near to giving up on George Osborne but this is a master stroke. The whole reason nobody of merit has been prosecuted for the failure of Banking crisis was because they are all part of the old boys club, closing ranks for self preservation.

    An appointment of Tucker or Turner and the other miscreants would merely have resulted in more of the same. This move will I am sure upset quite a few people so I think that Carney will have his work cut out just watching his back.

    Hope he achieves what is required.

  11. I wonder what Carney’s strategy will be for the BOE base rate? Increase? Decrease? Stay the same? Maybe he will be a bit bolder than King??

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