Mark Carney to England

by Aaron Wherry

Finance Minister Jim Flaherty has just announced that Mark Carney has been appointed Governor of the Bank of England.

The Honourable Jim Flaherty, Minister of Finance, today announced that Mark Carney, current Governor of the Bank of Canada, has been appointed as Governor of the Bank of England effective July 1, 2013.

“On behalf of the Government and all Canadians, I would like to thank Governor Carney for his work at the Bank of Canada and offer my best wishes in his future role at the Bank of England,” said Minister Flaherty. “This appointment, which marks the first time a foreign national has headed the Bank of England, is another strong example that Canada’s monetary and fiscal systems serve as models to the world. While other countries have faced significant turbulence, our financial system has consistently been ranked as the soundest in the world.”

Carney, whose term as Governor began February 1, 2008, had previously served as Senior Associate Deputy Minister of Finance and G-7 Deputy of Canada. He was also recently named chair of the Financial Stability Board. “As Minister of Finance, I appreciate the guidance Governor Carney has provided in recent years,  in fulfilling the Bank’s mandate of maintaining the stability of our monetary system and controlling inflation,” noted Minister Flaherty.

The usual practice for selection and appointment of the Governor of the Bank of Canada will be followed. The Board of Directors of the Bank of Canada will shortly form a special committee comprised of independent directors whose mandate will be to undertake a recruitment process for the selection of the next Governor. Governors of the Bank of Canada are recommended by the independent directors, and appointed by the Minister of Finance and the federal cabinet.

And here is the official announcement from the Bank of Canada.

The Bank of Canada announced that Her Majesty the Queen has approved the appointment of Mark Carney as Governor of the Bank of England effective 1 July 2013.  He will serve a five-year term.

Governor Carney will continue to serve in his current position until 1 June to ensure a smooth transition to the next Governor of the Bank of Canada.  The Governor will remain Chair of the Financial Stability Board.

Governor Carney said: “I am honoured to accept this important and demanding role, and to succeed Sir Mervyn King with whom I have worked closely over these past five years and from whom I learned so much.

This is a critical time for the British, European and global economies; a decisive period for reform of the global financial system including its leading financial centre, the City of London; and a crucial point in the Bank of England’s history as it accepts vital new responsibilities.”

“It has been a privilege to serve as the eighth Governor of the Bank of Canada.  I am proud of the Bank’s contribution to the resilience of the Canadian economy throughout an unprecedented period of global turmoil.  The Bank is helping to lead the reform of the global financial system.  It is introducing the most sophisticated currency in the world.  And as the Government of Canada’s fiscal agent, it is providing funds management and banking services with the highest reliability and resiliency.”

“Canadians can be confident that such leadership will continue.  The depth and quality of its human resources, the dedication of its employees and the clarity of its strategic vision will ensure that the Bank will continue to promote the economic and financial welfare of all Canadians.”

“I would like to thank the Board of Directors of the Bank of Canada, Minister Flaherty and Prime Minister Harper for having given me this opportunity to serve Canada.  I have done so to the best of my abilities and am humbled by the support I have received from both my colleagues at the Bank and from Canadians across this great country.”

The Board of Directors will shortly form a Special Committee comprised of independent directors whose mandate will be to undertake a recruitment process for the selection of the next Governor.  Governors of the Bank of Canada are appointed by the independent directors, subject to the approval of the Minister of Finance and the federal Cabinet.




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Mark Carney to England

  1. Congrats to Carney but gobsmacking news. I am surprised by this announcement, I wonder if UK contenders were tainted by libor scandal and Brits want clean pair of hands?

    Will someone ask Trudeau what he thinks of Albertans and success.

    • I always enjoy hearing about how the word “lucky” is turned into “success” for Alberta. Imagine instead of oil underneath their feet, they had rock.

      • Then it would be “Can’t vote Liberal because of what the National Rock Program did to my grandpappy.”

    • The first six years in the NWT made all the difference.

      • You mean like Harper’s first twenty years in Toronto?

        You can’t have it both ways.

        • I don’t believe I tried to have it any way, where Steve is concerned.

  2. ‘is another strong example that Canada’s monetary and fiscal systems serve as models to the world’…..Flaherty quietly admits Cons had nothing to do with it.

    • Yes, so quietly that nobody heard it, and it was never said. Like all the other voices in your head.

      • Everyone heard it but Conbots.

    • Yes, and a female MP from England indicated that she knew that as well…it went something like, “From what I understand of the Canadian banking system, much of the stability? etc. was there before Mark Carney arrived on the scene”. And that would include S. Harper and gang as well. It made me think that with all of Harper’s touting to and what could be perceived as chastizing the rest of the world, they all know that he didn’t create the banking system that got us through this patch.

      • Harp thinks nobody is paying attention to what’s going on. He’s used to the….cough….in his caucus.

  3. Horrible deal. We didn’t even get any draft picks in return!

  4. So which Goldman alumnus gets to be Bank of Canada gov then? It does seem to be a qualification for any big job now… if we want the bond vigilantes to consider us “serious” and all. Also: shouldn’t there be questions to the Government about talent retention and HM nicking a Cdn top bureaucrat for the home office without compensation?

      • Love you subtlety and persistance!

  5. Surprising to hear, but not terribly surprising in retrospect.

    After all, the position had to suck for Carney, his hands were tied by current government policy avoiding public debt, and his legs are taken out from under him by the Fed down in the US. With nothing he could do but make increasingly lame warnings about private debt levels, it must have been terribly frustrating.

    Europe is in such trouble that they’re probably wiling to do something if he suggests it.

  6. Oh dear. My biggest concern is that the Conservatives will now have to make a real decision that can seriously affect the future of the country; I have absolutely no confidence in Jim Flaherty’s ability to make this decision. None whatsoever. The current government is a team of remarkably mediocre talents and personalities who up until how have proven (mostly) harmless and boring.

    Can someone please say something to reassure me?

    • Hindsight is always 20/20, but credit where credit is due: Jim Flaherty did pick Mark Carney in 2008.

    • Carney had been deputy guv, and just moved up a notch. The current deputy-guv will likely take over now. The FinMin just nods his head.

      • Carney was at Finance under Flaherty for a couple of years (on “loan” fromt he BoC) immediately prior to being name head of the BOC.

        • Flaherty inherited him.

          Between November 2004 and October 2007 Carney was senior associate deputy minister, and G7 deputy, at the Canadian Department of Finance. He served under Liberal finance minister Ralph Goodale and Conservative finance minister Jim Flaherty.

          http://en.wikipedia.org/wiki/Mark_Carney

      • Carney was deputy governor until 2004, but Paul Jenkins was deputy governor in the period leading up to Carney’s appointment. As sourced in the Wikipedia article you cite, “Mr. Carney’s appointment was something of a surprise”

        http://www.financialpost.com/story.html?id=4e6b4073-de51-4ab2-b79c-626e93627b45&k=8869

        Had the finance minister just ‘nodded his head’ in 2008, Paul Jenkins would be BoC governor today.

        • As I said….a) Flaherty inherited him and b) if Cons want to claim him, it’s fine with me. Britain will regret this.

        • You made the mistake of assuming Emily can read.

    • Leprechauns are unpredictable so I have no assurances for you. They ordinarily save their money, they are industrious, but they also like a good practical joke. Lets hope Flaherty favours his industrious side when picking new BoC governor instead of the prankster that he can also be.

      • Amusing as always Tony. Why do I think he’s going to pick Dean Del Mastro to be the next governor?

        • who better than failed car salesman?

          • How does Gordon Brown sound, old chap?

    • Think what you will about most of that crew on The Hill, Canada has been exceedingly fortunate to have Flaherty these past several years. Check the record. Final decision on Carney’s replacement not Flaherty’s alone, but if you have suggestions, why not send them to the PMO?

      Just curious, though: … why ” San Diego ” ? …

      • Because that’s where I live.

    • What was your favourite decision that Carney made on his own that ” can seriously affect the future of the country ” ?

      • My favourite decisions of his are each and every policy announcement he makes. He’s had to walk a fine line these past years in balancing the need to stimulate growth (i.e. lower rates) with the need to reign in rising debt (i.e. raise rates).
        Carney and the BoC made these decisions on their own. The government has no say or input in that Monetary Policy Report process. Nor should they – the BoC is an arm’s length institution, it is not to be interferred with.

  7. I don’t know what Carney as Bank of Canada governor has done to make our financial systems as sound as they are. This all happened before he was named Governor. May be he worked in the background to ensure that the Conservatives did not undo any of that good work that took place before they took power. I suspect he also probably led the Canadian fiscal policy in the past 4 years given Flaherty’s and Harper’s ineptitude in that area.

    • What he did is not much of anything.. something that often isn’t as easy as it sounds.

  8. Allo, allo, allo. What’s all this then, Guvnr?

  9. Albertans will now be essentially running half of Britain now too.

    Over to you Justin.

    • Heh…if Albertans want ‘credit’ for Carney more power to ‘em. Britain will regret this.

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