Top bosses back Bailey to steer City out of the EU

Appointment of new Bank of England Governor met with enthusiasm by major figures from Square Mile

LEADING City figures rallied behind new Bank of England Governor Andrew Bailey as the best candidate to steer the Square Mile through Brexit.

Mr Bailey, who will succeed Mark Carney in Threadneedle Street on March 16, was unveiled yesterday as the “outstanding” choice by Chancellor Sajid Javid. The 60-year-old will earn a £495,000 annual salary over his eightyear term. The Financial Conduct Authority chief executive has been at the forefront of talks with the European Union in preparing the City for Brexit and will continue to play a leading role in the crafting of new regulations, according to the Chancellor.

But he has also been unafraid to hint at the potential for divergence with Europe, saying in April that “left to our own devices, I think the UK regulatory system would evolve somewhat differently”. The Chancellor stressed that the “only consideration” was the candidates’ suitability for the job rather than their views on Brexit.

Former London Stock Exchange boss Xavier Rolet, who now runs billionaire Sir Michael Hintze’s fund CQS, said the appointment will boost the City during negotiations. Mr Rolet said: “You often hear that central bankers and regulators don’t think in the same way. If you’ve played both sides, it’s certainly a major advantage. He has the ability to deal with both central banks and securities regulators around the world to help secure the complex regulatory agreements that will be needed to maintain London global leadership as a financial centre.”

Other chief executives and grandees said the all-round experience of Mr Bailey – who first joined the Bank more than 30 years ago – would be a key asset after more than three years of political turmoil and debate over the UK’S relationship with Europe.

Outgoing Phoenix boss Clive Bannister said: “He understands how to navigate complex regulatory environments and is well positioned to argue for Britain in the debates to come with our friends in Europe.”

Ian Axe, the chief executive of Panmure Gordon, said: “The City needs stability after a period of ambiguity and confusion over Brexit. Andrew is known, and a very safe pair of hands.”

Mr Bailey beat off candidates for the job including former deputy governor Dame Minouche Shafik, and the former US rate-setter Kevin Warsh.

Dame Jayne-anne Gadhia, former Virgin Money boss and now Salesforce UK chief, said: “He will hold everybody to account and be his own man. He is good news for the City and the UK.”

Sir Mark Boleat, a former City of London chief and chairman of the Link cash machine network, added: “I’ve found him absolutely straightforward and honest, and frank when he needed to be … He is not beholden to anybody and he is not looking for the next job.”

Revolut chairman Sir Martin Gilbert added: “He’s a very good choice, he has the necessary experience to do the job. I always thought the spell at the FCA would stand him in good stead to be appointed as Governor as it gives him experience of both regulatory bodies.”