Gieve to go
Sir John Gieve is to stand down early as deputy governor of the Bank of England, I have learned.
He is in charge of the Bank of England's operations responsible for the stability of the financial system.
Sir John's departure coincides with an initiative by the Treasury to formalise and beef up the bank's financial stability role.
The unexpected announcement will be made tomorrow, when the Treasury is also expected to confirm that Charles Bean - the Bank's chief economist - is to become the other deputy governor in charge of its monetary policy side.
Charles Bean replaces Rachel Lomax.
It is unclear who will replace Gieve. The Bank of England's senior directors would probably wish the new financial stability deputy governor to be Paul Tucker, the bank's executive director in charge of markets.
The Treasury is refusing to comment on the changes.
Gieve was savaged when interrogated last autumn by the Treasury Select Committee for allegedly being insufficiently on top of the crisis at Northern Rock. His colleagues regarded the attack as unfair.
However Gieve is not a markets specialist. And it is thought that the Treasury wants someone with greater technical knowledge in charge of an expanded financial stability division at the bank.
Gieve was appointed deputy governor in January 2006 and has two and a half years of his term to run.
His appointment was pushed through by Gordon Brown, when he was chancellor, in the face of stiff resistance from the Governor, Mervyn King.
Mr King recently had a battle with the Treasury to have his preferred candidate, Charles Bean, appointed as the replacement for Ms Lomax.