Mark Carney named new Bank of England governor

 

Mark Carney: "I am very honoured and excited"

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Mark Carney has been named as the new governor of the Bank of England by Chancellor George Osborne.

Mr Carney, the governor of the Canadian central bank, will serve for five years and will hold new regulatory powers over banks.

He was a surprise choice for the head of the UK's central bank and had previously ruled himself out.

The post is seen as one of the most important positions in the stewardship of the UK economy.

Current governor Sir Mervyn King steps down from the post next June.

Sir Mervyn said Mr Carney represented "a new generation of leadership for the Bank of England, and is an outstanding choice to succeed me".

'Critical time'

Mr Osborne told Parliament that Mr Carney, 47, would bring the "strong leadership and external experience the Bank needs" and added that the Canadian would apply for British citizenship.

Start Quote

Mr Osborne regarded Mr Carney as the central banking equivalent of Sir Alex Ferguson or Pep Guardiola”

End Quote

He said Mr Carney was acknowledged as "the outstanding central banker of his generation".

During Mr Carney's five years as governor in Canada, Mr Osborne said he was "acknowledged to have weathered the economic storm better than any other major Western economy".

Mr Carney said he was "honoured to accept this important and demanding role" at a "critical time for the British, European and global economies".

He will serve in his current post until May next year. Mr Carney said he was "not without ties" to the UK - his wife is a dual national of the UK and Canada.

Shadow chancellor Ed Balls welcomed the incoming governor as a "good choice, good judgement".

Andrew Tyrie, chairman of the Treasury Select Committee, told the BBC that Mr Carney "ticks all the boxes" but added that his committee would question him on matters such as how he will approach macro-prudential stability and what his views on quantitative easing are.

The British Chambers of Commerce said it hoped that the new governor would "focus relentlessly on supporting business growth across the UK - not just in the Square Mile".

The CBI said Mr Carney's "strong track record as the Canadian central bank governor and extensive experience in international financial regulation mean that he is well positioned to guide Britain through challenging economic times".

Mark Carney

  • Educated at Harvard and Oxford
  • Spent 13 years with the investment bank Goldman Sachs
  • Has a British wife
  • Currently serves as chairman of the Financial Stability Board
  • Fluent French speaker
Pay package

The term for a Bank governor is eight years. But the chancellor told Parliament that Mr Carney indicated he intended to serve for five years and to stand down at the end of June 2018.

"Mr Osborne was keen to get his preferred central governor, because Mr Carney was widely perceived to have all the bits: he is admired by monetary economists, regulators and - allegedly - his staff (or to put it another way, he is an unusual economist and central banker, in that he is seen as a half-decent manager)," the BBC's business editor Robert Peston said.

The governor of the Bank chairs the monetary policy committee, which has responsibility for setting interest rates in the UK.

George Osborne: "Mark Carney is acknowledged as the outstanding central banker of his generation"

Following the government's decision to scrap the Financial Services Authority and hand some of its responsibilities to the Bank, the governor will also oversee important regulatory powers as well.

Other candidates for the post included Bank deputy governor Paul Tucker, FSA chairman Lord Turner, Sir John Vickers, who led the government's recent review into breaking up the banks, and Santander bank's UK chairman Lord Burns.

Mr Tucker, who has spent most of his career with the Bank, was seen by many as the favourite for the job.

The BBC understands that Mr Carney will be offered a total pay package of about £624,000 a year.

Sir Mervyn's salary is £305,000 a year, but he receives much more generous pension contributions making his total pay and pension package worth about £519,000.

Mr Osborne also announced the re-appointment of Charlie Bean as Bank of England deputy governor for monetary stability for a further year until the end of June 2014.

 

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  • rate this
    -4

    Comment number 740.

    @731
    and it was an ex Goldman sachs man Henry Pualson that helped make Lehman Bros Bankrupt in the first place.... which led about 5 days later to the whole banking industry needing a 500 bln dollar bailout because he didnt understand banruptcy rules outside of the US
    http://www.sourcewatch.org/index.php/Goldman_Sachs#Former_Goldman_Sachs_Employees_Hired_by_the_Bush_Administration

  • rate this
    +5

    Comment number 739.

    Ossprey - you are misinformed. He has been in the UK before (10 years), has a british wife and children and he likely already has an indefinite leave to remain visa - that means he likely already a British National. I would rather have him than a Brit like Tucker whose involvement in Libor is questionable.

  • rate this
    +2

    Comment number 738.

    Will he be bringing Canadas vast reserves of minerals and fossil fuel reserves with him?
    I suspect theses vast reserves played a tiny part in Canadas survival of the global financial meltdown.

  • rate this
    +1

    Comment number 737.

    An ex-employee of Goldman Sachs couldn't possibly have been involved in all the banking double dealing that got us into this mess, could they?

  • rate this
    0

    Comment number 736.

    ummm BBC, SURPRISE?

    Was this not predicted SEVERAL MONTHS ago by MAX KEISER? Amongst others!

    I suppose he will be taking the test?

    Though my first question wouldnt be about Brit history rather; does the pay differential between you & the leaving chair reflect how bad King was or the real rate of inflation?

    If the later can I have a relative pay rise, if the former can I have my money back?

  • rate this
    -6

    Comment number 735.

    The UKBA should refuse a visa to Mark Carney as the position can be filled by someone that holds a British pasport as is required by UKBA rules and regulations, Or is this govenment haveing one set of LAWS for the wealthy and another set of LAWS for the rest of us Brits? this position or any other should be filled by someone within the UK before going overseas, as the UKBA rulebook states.

  • rate this
    -3

    Comment number 734.

    This mystical position needs to be filled by someone who can carry off the magical task of simultaneously acting as gamekeeper whilst keeping the landowners and poachers happy.

    All the time making sure the serfs, plebs, are subservient.

  • rate this
    +4

    Comment number 733.

    Yes, it is the best idea to hire the most qualified person for the position, that was done.
    Its unfortunate most of you are bashing this man before he even starts the job. This surely sounds like jealously to me!!
    We in Canada are losing a very qualified Governor of the Bank of Canada.

  • rate this
    +4

    Comment number 732.

    At least Lord Turner didn't get the job. He has driven the average punters back towards the banks as he screwed over the IFA market. FSA is a poor regulator and should never have had half the powers given to them. They have lurched from shambles to shambles. So am in favour of BOE getting some of these powers back as the FSA has killed IFA advice for average people

  • rate this
    -1

    Comment number 731.

    Scary but interesting choice. King is the court jester by comparison. Lest we forget it was King who infamously tried to push interest rates up for months after Lehman's brothers collapsed. Yep, check! Had he been allowed, we'd all be bankrupt. And yet lest we forget our last dalliance with the far side, London Underground Boss Tim O'Toole, who decided "time to go home" with his family to the US.

  • rate this
    +3

    Comment number 730.

    Continued.... However I do think that Carney is the right man for the job, well better than the other candidates anyway.

  • rate this
    -1

    Comment number 729.

    Great... Goldman Sachs’ will soon have control of all major economies in Europe! Doesn’t that just make you feel warm and cosy on such a cold and rainy autumn evening Dave?

  • rate this
    -1

    Comment number 728.

    Isn't this a strange appointment considering how Cameron and Osborne have been talking a big game on curbing immigrantion, especially from non-EU countries? I bet this guy gets a fast-track visa too, no problem.

  • rate this
    -5

    Comment number 727.

    It's always best to hire the best person for the job. But I do feel there must have been at least someone out there unemployed that could have been hired for this roll. Its not a hard job as the team behind King brings the answers to the table and its King's job to make the announcements in a soothing way that doesn't upset the markets. Out of work actor could do it and for a lot cheaper.

  • rate this
    -1

    Comment number 726.

    @ 713. dibbler88

    "There is too much bank bashing, it takes two people to lend and borrow money"

    Eh? What planet do you live on? No, it takes FOUR people.

    There is the Layabout with no income.
    There is the Banker willing to lend him money.
    There is the Politician guaranteeing the Banker suffers no loss.

    And then there's the *Mug* who pays for it all through taxation & inflation.

  • rate this
    -4

    Comment number 725.

    So the Bullingdon Boys don't think there's anyone British capable of running his or her own country's Central Bank? Do they know where Canada is, I wonder?

  • rate this
    -1

    Comment number 724.

    Disgusted by this, not because he isn't English but because most he is an ex Goldman sachs man... Ex goldman banker are more interested in what they can do for their old bank - 2 examples Henry Pualson appointed by Bush as US treasury secretary, he refused to bailout lehmans bros, and Gertner who made sure goldman got 100% on the $ after the AIG bailout - these examples show where allegiances lie

  • rate this
    +1

    Comment number 723.

    Fantastic news 719 - good to hear!

  • rate this
    +1

    Comment number 722.

    He may as well be a very suitable choice for a gov of the Bank of England. But keep in mind that the general approach and policy of the whole of the Canadian banking industry is caution, regulation and tradition, a long lost attitude in the UK

  • rate this
    -1

    Comment number 721.

    @714 Went Worldwide think his first name was Fred. All else was wrong H&S etc hence Carno's

 

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