Randy McDonald (rfmcdpei) wrote,
Randy McDonald

[LINK] "Canada’s Carney to Succeed King Atop Bank of England"

The news that Bank of Canada governor Mark Carney has been selected to be the head of the Bank of England surprised me, inasmuch as I thought that the occasional talk about the Bank of Canaa picking the man who helped Canada navigate the 2008-2009 recession with a minimum of trauma would be just that. Bloomberg's analysis suggests that Carney really had that many advantages over his British competitors.

See also Agence France-Presse's piece, which notes that Carney--already married to a British national--is set to take up British citienship.

Bank of Canada Governor Mark Carney was unexpectedly named head of the Bank of England as the U.K. government looked abroad for a candidate untainted by financial turmoil to lead the beefed-up central bank.

Carney, a 47-year-old former Goldman Sachs Group Inc. managing director, will become the first foreigner to run the 318-year-old institution as it absorbs new powers to oversee banks. He’ll replace Mervyn King, 64, in July as policy makers pursue record-low interest rates and asset-buying to propel the economy from its first double-dip recession since the 1970s.

Carney’s London posting comes after a series of trading scandals dented the capital’s status as the world’s leading financial center, prompting a rejig of regulation that will test skills the Canadian gleaned as head of the world’s banking watchdog. His chief rival for the job, BOE Deputy Governor Paul Tucker, became entangled in the Libor rate-rigging scandal earlier this year.

“It’s incredibly bold of the government to appoint a foreigner,” said Steven Bell, chief economist at hedge fund GLC Ltd. in London and a former U.K. Treasury official. “He has experience of running the regulatory and monetary policy decisions. He’s highly regarded.”

In announcing his selection and seeking to offset any criticism about his decision to look overseas for talent, Chancellor of the Exchequer George Osborne described Carney as “quite simply the best, most experienced and most qualified person in the world to do the job.”
Tags: canada, commonwealth, economics, links, politics, united kingdom
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