Ex-barclays boss vies for Bank hotseat
FORMER Barclays chief executive John Varley is emerging as the leading private sector candidate to become governor of the Bank of england.
he joins a narrowing field for the top job led by the deputy governor, Paul Tucker and former Cabinet Secretary, Lord O’donnell.
The present governor, Sir Mervyn King, is due to retire from office in June 2013. Traditionally, the name of the new governor is announced at least six months ahead of the change to allow financial markets to adjust. Mr Varley, 58, would be a controversial choice coming from Barclays with its reputation for promoting tax avoidance schemes and huge salaries for its investment bankers.
he stepped down as the company’s chief executive last year and is credited for drawing up the ‘peace deal’ between the banks and the Government which was intended to boost small business lending.
he also headed the only large domestic bank which managed to avoid state recapitalisation at the time of the financial crisis in 2008.
The best known candidate for the governor’s job is Lord O’donnell, 59. As Gus O’donnell, he was the most senior civil servant at the Treasury when Gordon Brown was Chancellor. he was later elevated to Cabinet Secretary and head of the civil service.
The hot internal favourite however remains Paul Tucker, 54. If successful, the Cambridge maths and philosophy graduate would be the third deputy governor in succession to be elevated to the top job.