Boss of scandal-hit watchdog takes top Bank of England job

A CITY veteran who has faced controversy while running the financial regulator was yesterday confirmed as the new Bank of England Governor.

Andrew Bailey was chosen for the job by Chancellor Sajid Javid after one of the most drawn-out selection processes in living memory.

The 60- year- old’s experience makes him ‘well equipped’ to deal with Brexit, a former Treasury minister said yesterday.

Mr Bailey was regarded as the early favourite for the job when formal applications were first sought in June.

But it was widely thought his candidacy had been badly damaged by mistakes in his current job at City regulator the Financial Conduct Authority.

There were calls for his resignation after the implosion of a small investment firm London & Capital Finance and the meltdown in Neil Woodford’s multi-billion investment empire earlier this year.

He will begin work at the Bank as its 121st governor on March 16 on a salary of £495,000 and has been appointed to a full eight-year term. The Chancellor told a press conference yesterday: ‘In Andrew Bailey we have found the standout candidate in a competitive field.’

As Governor of the independent Bank of England, he will be responsible for setting interest rates and the course of the economy, maintaining the value of the pound and preserving the nation’s financial stability.

Mr Bailey will also receive a generous pension. But the Leicester-born official will not receive the controversial £250,000 annual allowance enjoyed by current Governor

Mark Carney. Mr Bailey’s ability to navigate the rough waters of Brexit are understood to have been a key factor in his appointment, which has to be confirmed by the PM then go to the Queen for affirmation. His main rival, London School of Economics director Minouche Shafik, was apparently ruled out because of past pro-Remain views.

Former Treasury Minister Lord Myners said of Mr Bailey: ‘He’ll have the challenge of coping with Brexit but he’s well equipped for dealing with those things.’

‘Well equipped for Brexit’

ON many key decisions, taking the safe option is often seen as lacking imagination – boring even.

When it comes to choosing a Governor for the Bank of England, however, this is certainly the case. The safer the better!

So Boris Johnson’s choice of Andrew Bailey to replace the debonair Mark Carney looks to be right on the money.

With 35 years’ experience at the Bank – including as chief cashier, deputy governor and in his present role as head of the Financial Conduct Authority – Mr Bailey was very much the continuity candidate.

Yes, there have been scandals on his FCA watch, for which he has rightly drawn criticism. But it’s also true that when he inherited the organisation, it was deep in crisis. By common consent, he has stabilised and improved it.

Also a key figure in rebuilding the financial system after the 2008 crash, Leicester grammar school boy Mr Bailey has a reputation for mental toughness and keeping a cool head under pressure.

These are qualities he will need in abundance for the post-Brexit challenges ahead. He has a class act to follow. This paper wishes him well.