Front-runner pulls out of FCA job race

THE interim boss of the watchdog that brought bankers to task after the financial crisis has pulled out of the running for the top job.

Tracey McDermott, acting head of Britain’s Financial Conduct Authority (FCA), has withdrawn from the selection process to be permanent chief executive.

She said: ‘Going through the recruitment process has made me reflect on what I want to do with the rest of my career. As a result I have decided that this is not the right job for me at this stage of my career.’

McDermott ( pictured) was one of the leading candidates for the post to replace Martin Wheatley who was ousted by Chancellor George Osborne last year.

Some experts are concerned that Osborne and the Government are putting pressure on the FCA to take a softer line on bankers.

McDermott’s previous job was chief enforcer where she imposed a series of fines on banks over scandals including Libor and foreign exchange rigging. The news came as MPs on the Treasury Select Committee were preparing to grill the FCA for dropping an inquiry into banking culture months after its announcement.

Andrew Tyrie, chairman of the influential House of Commons committee, said the dropping of the probe into culture and other recent decisions gave an impression of a ‘weakening of resolve’ by the FCA.

He added: ‘The decision to undertake this review was, after all, part of the FCA’s business plan for 2015.’ The select committee will question McDermott and FCA chairman John Griffith- Jones on January 20. On top of the abandoned culture probe, the FCA has been criticised for saying it will take no action against HSBC over allegations of Swiss tax avoidance. It has also shelved a report into incentives for bank sales staff.