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.

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

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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
    0

    Comment number 800.

    How come we can vote for police commissioners, and not the Governor of the Bank of England, the person most likely to actually make a difference to the electorate?

    Until this last round it wasn't even advertised as a proper job. Then they expect the plebs to go thru HR recruitment.

    Utter hypocrisy I'm afraid.

  • rate this
    0

    Comment number 799.

    I'm not popular but then again I do love my country and am domiciled (that means I pay tax) here.

    For Goldman Sachs see:
    http://www.guardian.co.uk/business/andrew-clark-on-america/2009/jul/14/goldmansachs-banks

    Still better than Lord X, Sir Jimmy, Rt Hon Inbred.

    "They were all rogue traders you know, one offs. Nothing to do with governance and greed". Goodluck Jonathon.

  • rate this
    +1

    Comment number 798.

    Another Goldman Sachs kid. What a surprise.

    If you wanna run things in this brave new world (governments, national banks, federal reserves), go work for Goldman Sachs for at least a decade.

    http://www.rollingstone.com/politics/news/the-great-american-bubble-machine-20100405

  • rate this
    +1

    Comment number 797.

    Oh goody

    Yet another product of Harvard, Oxford and Goldman Sachs


    If the gene pool of people who run the financial system in the West gets any smaller they're going to end up like those guitar plucking hillbillys

    Can we have some people who DIDN'T go to

    Harvard
    Yale
    Oxford
    Cambridge
    and Goldman Sachs please


    Too much clone inbreeding chaps, new blood and new thinking is desperately needed

  • rate this
    +1

    Comment number 796.

    Clearly a political appointment. Osbourne clearly wanted someone with the same ideology. It was not Carney who meant that Canada was not affected so much by the global slowdown, it was that Canadian banks did not hold toxic debts, no housing bubble as in the US or here even, and loads of natural resources.

  • rate this
    0

    Comment number 795.

    Lucks Goldmans. Bet they get some nice benefits in he coming years.

  • rate this
    0

    Comment number 794.

    779.Peter
    Canadian Banks were exposed to the sub prime, and Carny was right to refer to the 'consumer treadmill' as being a significant factor in its exacerbation of the crisis! He is also right to state that growth of businesses is a way out of recession. Nobody said that would be easy!

  • rate this
    +1

    Comment number 793.

    Don't let him anywhere near the LIBOR rate the last import from the geographical area of North America "worked" for a well known British Bank and was found to have been responsible for some very dubious practices, if my memory serves me, he was also a Goldman Sachs appointee!

  • rate this
    +2

    Comment number 792.

    Good luck guys but it's wishful thinking that a Canadian will magically solve all this. BBC has been wrongly reporting that our banks weren't bailed out, yet they were to the tune of $114 billion (alot for 35mil people). We're doing "good" (still running a deficit) because we've slashed environmental controls so we can rape and pillage our backyard, not because our bankers are any less crooked

  • rate this
    +2

    Comment number 791.

    Never has there been a better time to say:

    In the land of the blind, the one eyed rat is king.

  • rate this
    +2

    Comment number 790.

    ex Goldman Sachs? Nice one! God help us!

  • rate this
    +1

    Comment number 789.

    #784. An excellent point Sir. I have to admit I irst wondered whether a foreign national would have our interests at heart, but the truth is with the right oversight he might be the best person to make objective decisions.

  • rate this
    +1

    Comment number 788.

    Its all a con job by the CONservative led government. The economy hits a triple dip in late August/September 2013 and as a result Osbourne raises VAT and cuts benefits and pensions blaming the new Governor of the BOE. Only the Tories could dream this up. I wonde if Osbourne has read "The Prince" No impossible, there are words in Machivielli's work of over two sylables.

  • rate this
    0

    Comment number 787.

    #777. prudeboy

    Geez, I hope your prediction is wrong. The one time boring and predictable is good is when it is describing the guy who is holding your life savings. Hopefully the UK banking management can adapt to him and vice versa.

  • rate this
    +2

    Comment number 786.

    Being of a non-British origin, I just hope he will be able to successfully resist the relentless pressures from the Old Boy Network: "I say, ol' chap, this is Britain, don't y'know. We don't do things that way here!" Quite: so let's do them differently, since The System is rotten to the core and it got us into the mess we're in now.

  • rate this
    0

    Comment number 785.

    18 nicknack1

    Wrong. Is Wall Street in Canada, nope, London, nope ...?

    Canada wasn't exposed to massively overvalued cleverly (to idiots) packaged debts.

    Doesn't take a genius to look clever when he's sat on a house built on rock when the other guys built their houses on sand.

  • rate this
    +2

    Comment number 784.

    It may not matter much who is in that seat, but the choice of a non-City man is at least an interesting move. In theory it could actually improve the chances for the big big clean-up that is needed in the British banking sector in order to allow some future for this country.

  • rate this
    +1

    Comment number 783.

    Lets outsource the BOE to a call centre in Manila. Perhaps their shared resources will have expertise in managing the finances of other third world countries.

  • rate this
    +5

    Comment number 782.

    I think he's a very ineresting choice :)

    There is one thing I would like him to be capable of.....I hope he has the brass ones to tell Gideon & Cameron straight when he thinks they've got it wrong. We need a governor that has a backbone and not another yes man !!

  • rate this
    +2

    Comment number 781.

    We need a strong Central Bank and I hope that Mark Carney would be the right person to control and regulate other banks and financial institutions and also to give right advice to the government. Priority should be to regain the lost confidence of the public

 

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