A shock and surprise announcement from George Osbourne today as he announced the Canadian Mark Carney as the next Governor of the Bank of England. Do not doubt that this is one of the top jobs in the UK.
George Osbourne defended his decision by stating that Mr. Carney was:
“The outstanding Central Banker of his generation.”
He also said that he was the best man for the job in the whole world bar none. I think it speaks more for how unsuitable the home grown UK talent was than anything else.
This is the first time since the creation of the Bank of England back in 1694 that it has been governed by a non British subject, in this case a Canadian. But Mr. comes highly qualified for the job.
He has managed arguably the best economy in the world Canada which has not had one bank bailout. In fact he has come through with his reputation enhanced. He understands Capital Markets. He worked for Goldman Sachs for 13 years (possibly not such a good thing! Could this be a case of Goldman getting “their man” into the BoE, and a “printer” into the system?). He speaks fluent French, went to Oxford University, already lived in the UK for a decade, his wife and children are British subjects, and he will apply for British citizenship.
Mr. Carney is also the current chairman of the board of the Financial Stability Board (FSB) which in itself is a considerable achievement and vote of confidence as this organization includes all G20 nations
This is a slap in the face for Mr. Paul Tucker who was touted as the next Governor . Too bad, LIBOR scandal for sure screwed that one up, and his dealings with Mr Bob Diamond.
In another departure from the norm he will only serve a 5 year term instead of the more usual 8 year, and Charlie Bean will stay on serving his current term.
Big Question: How will this effect the UK money printing practices and will we see more Quantitative Easing with Mr. Carney at the helm?
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