Bloomberg says Britain should get our central banker

Why does it always go that when a Canadian makes it big here, they leave to conquer other markets? From Michael Cera to Shania Twain, we can’t seem to keep anyone on our side of the border. No wonder Canada has an inferiority complex.

But it doesn’t just stop with our actors and singers: our bankers are at risk, too.

Mark Carney, governor of the Bank of Canada, is allegedly being courted to lead the Bank of England.

The rumour, which Carney vigorously denied, first emerged in April, when the Financial Times reported that Canada’s central banker had been informally approached as a candidate to replace the current head of the Bank of England, who will step down in June 2013.

And yesterday, more gossip about Carney’s potential departure came up in a Bloomberg column, which argued that Carney could help give Britain a fresh start after the LIBOR scandal:

Carney, who has a British-born wife, earned a reputation for healing troubled markets while at the Canadian finance ministry. In 2007, he brokered a restructuring of about C$35 billion ($34 billion) of asset-backed commercial paper, which helped to avert a deeper crisis as the collapse of the U.S. subprime market made banks worldwide reluctant to lend.

Man, Carney sounds amazing. Have we taken him for granted all this time?

England may want to use him to help shore up Britain’s economy and redeem its scandal-ridden financial sector, but what will we do without him if he goes?

Perhaps, though, we should be flattered that Britain wants something we have. Should we trade him in for Will and Kate?




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Bloomberg says Britain should get our central banker

  1. What a great opportunity for Carney.

    You can bet on it that he’ll move over there to head BoE. It’s a career opportunity equivalent to being named the head of the Feds in the USA.

  2. It’d be interesting to get more details on this $35B “restructuring” he brokered. Sounds like a bank bailout to me.

    Fact is the Harper Government began importing American banking deregulation in 2006 with 40-year no-money-down mortgages. This is the foundation of our current housing bubble and record levels of personal debt. It required $114B in bank bailouts in 2008 plus the CHMC (federal mortgage insurance agency) paid out $69B to cover junk mortgages.

    So it’s false to associate Carney with Canada’s relatively strong banking regulations (who didn’t become governor of the BoC until 2008.) It was the previous Liberal government that resisted deregulation that caused financial market meltdowns in many countries:

    “Much of the country’s resilience stems from policies—such as bank regulation and sound public finances—which predate Mr Harper.” (The Economist)

    Canada Bank Bailout Cost $114 Billion At Peak, CCPA Says
    http://www.huffingtonpost.ca/2012/04/30/canada-bank-bailout-cost-ccpa_n_1464398.html

  3. BTW, here’s some contrast to Harper’s incessant boasting/electioneering on the economy from Mark Carney:

    CP: Canadian economy expanding quickly, but will soon trail G7 countries: Mark Carney (April 2010)
    http://bit.ly/hEsG8l

    G&M: Strong loonie casts shadow over recovery: Mark Carney (April 2011)
    http://www.theglobeandmail.com/report-on-business/economy/interest-rates/strong-loonie-casts-shadow-over-recovery/article1981580/

    G&M: In private, Mark Carney offers a less rosy outlook (May 2011)
    “The tone was generally pessimistic on developed economy prospects, saying that we are still in the financial crisis … and that judgments on how well Canada came through it should probably not be made until we can look back five years from now.”
    http://www.theglobeandmail.com/report-on-business/economy/in-private-mark-carney-offers-a-less-rosy-outlook/article2028318/

    G&M: Carney warns on housing markets (June 2011)
    http://www.theglobeandmail.com/report-on-business/economy/housing/carney-warns-on-housing-markets/article2062166/

    Is our economy #1 in the world as Harper claims, or a house of cards?

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