Bloomberg News

Canada Is Pushing Carney to Lead Financial Stability Board

October 03, 2011

(Updates with Flaherty comment in second paragraph.)

Oct. 3 (Bloomberg) -- Canadian Finance Minister Jim Flaherty said he is lobbying for Bank of Canada Governor Mark Carney to become the next chair of the Basel-based Financial Stability Board.

“I certainly support and have taken steps to encourage this to happen,” Flaherty told reporters today after a speech in Whitby, Ontario. “He is certainly well qualified.”

The FSB was founded by Group of 20 nations to strengthen the global financial system, and Chairman Mario Draghi is leaving next month to lead the European Central Bank. Draghi in Zurich declined to comment today on his replacement, and FSB secretary general Svein Andresen said “several candidates” are up for the job and “consultation is under way.”

Swiss central bank President Philipp Hildebrand is also a candidate to lead the FSB, SonntagsZeitung reported Sept. 12, without saying where it obtained the information.

Carney worked at Goldman Sachs Group Inc. for more than a decade before joining Canada’s central bank, and has led a Bank for International Settlements committee that monitors global markets since last year. He has clashed with former banking colleagues over tougher capital standards.

Flaherty also reiterated today that European leaders can fix their debt crisis if they take strong actions to create a lasting solution.

“The longer this issue remains unresolved the more uncertainty there is and the more danger there is, which is the message we’ve been communicating to our European friends for months and months now,” Flaherty said.

“The exposure of our banks is relatively small to the European situation, particularly Greece, but the knock-on effect to the world economy can be difficult and that’s what we are worried about constantly,” he said.

--With assistance from Simone Meier in Zurich. Editors: Paul Badertscher, Christopher Wellisz

To contact the reporter on this story: Hugo Miller in Toronto at hugomiller@bloomberg.net; Greg Quinn in Ottawa at gquinn1@bloomberg.net

To contact the editors responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net; David Scanlan at dscanlan@bloomberg.net.


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