Bloomberg News

BOE Governor Should Be British, Standard Chartered’s Peace Says

April 19, 2012

The U.K. government should choose a British candidate to replace Mervyn King when he steps down as governor of the Bank of England next year, rather than someone from overseas, Standard Chartered Plc (STAN) Chairman John Peace said.

“It is important we get the right person with the right credentials,” Peace told journalists at a City of London Corporation event yesterday. “Ideally that would be a person from Britain.”

His comments came after the Financial Times reported that Bank of Canada Governor Mark Carney had been informally approached by a member of the U.K. central bank’s Court, which governs its affairs, about taking over from King. Carney, who is also chairman of the Financial Stability Board, denied yesterday there had been any contact or communication about such a move.

U.K. Chancellor of the Exchequer George Osborne is considering looking outside the central bank for a successor to King when his term expires in June next year, which would be the first such move in 30 years, two people with knowledge of the matter said in February. Widening the pool of candidates beyond Bank of England insiders follows strains with the British Treasury dating back to 2007 that center on how King responded to the financial crisis.

Osborne’s Labour Party predecessor, Alistair Darling, who served during the crisis, said the U.K. central bank needed a “thorough shakeup” and “we would be missing a trick if we didn’t look as widely as possible,” The Times of London reported today, citing an interview.

To contact the reporters on this story: Scott Hamilton in London at shamilton8@bloomberg.net; Emma Charlton in London at echarlton1@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net


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