Wed, Nov 28, 2012 - Page 15 News List

Canadian lands Bank of England job

FOREIGN FIRST:Mark Carney was a surprise choice for Bank of England governor, having not initially applied for the position that Mervyn King will vacate next year


Buses pass the Bank of England in the City of London on Monday. Britain named Bank of Canada Governor Mark Carney on Monday as the next governor of the Bank of England.

Photo: Reuters

The British government has chosen Mark Carney, a Canadian, to become governor of the Bank of England, the first time a foreigner has been tapped for the position since the central bank was founded in 1694.

British Chancellor of the Exchequer George Osborne announced the surprise choice to the House of Commons on Monday, saying Carney — who is currently the governor of Canada’s central bank — would apply for British citizenship.

“Mark Carney is the outstanding candidate to be governor of the Bank of England and help steer Britain through these difficult economic times,” Osborne said. “He is quite simply the best, most experienced and most qualified person in the world to do the job.”

Besides his job as a central banker, Carney is also head of the G20’s Financial Stability Board, a global supervisor, and spent 13 years at Goldman Sachs. He had been speculated as a possible choice but was not considered a front-runner.

“I’m honored to accept this important and demanding role,” Carney, who will start on July 1, said at a news conference in Ottawa.

“It’s a decisive period for reform of the global financial system including its leading financial center, the City of London. And it’s a crucial point in the Bank of England’s history as it accepts vital new responsibilities,” he said.

Carney will succeed the current governor, Mervyn King, when his term ends next year. As well as chairing the committee which sets the UK’s main interest rate, the governor will be given the new responsibility of supervising the country’s banking industry. Carney told Osborne that he will only serve five years of the usual eight-year term.

King said Carney was “an outstanding choice” and represents “a new generation of leadership.”

Ed Balls, economic spokesman for the opposition Labour Party in the House of Commons, said Carney “has a track record of handling tough and complex challenges” and is “a good choice.”

Osborne had boasted that this was the first time that the Treasury had advertised the governor’s job, but Carney said he had not applied.

“I didn’t apply as part of the formal process to the position,” he said. “These discussions really only intensified in the last two weeks.”

Carney, 47, was appointed to a seven-year term as governor of the Bank of Canada in February 2008. He will step down on June 1.

He gained a bachelor’s degree in economics from Harvard University in 1988, and master’s and doctoral degrees in economics from Oxford University.

Carney was employed by Goldman Sachs for 13 years, working in London, Tokyo, New York and Toronto, before being appointed deputy governor of the Bank of Canada in 2003.

Carney is not the first ex-Goldman Sachs employee to lead a central bank, as European Central Bank President Mario Draghi is also a former employee of the US investment bank.

“I’m not without ties to the United Kingdom. My wife is a British and Canadian national. My children are both. I lived there for a decade. I know a lot of people in the City, in industry, in the UK,” Carney said.

“Obviously I think I can play a constructive role as the next governor in relaunching this institution with its new responsibilities, contributing to price stability, to financial stability and to insuring that the rebalancing of the UK economy, which is under way, but is seen through over the course of the next five years,” he said.

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