Bank of England directors: Charlotte Hogg's resignation was 'disproportionate'

LONDON — The resignation of Charlotte Hogg, the Bank of England’s chief operating officer, over questions about a possible conflict of interest in March was “disproportionate” the offence, the central bank’s court of directors said.

“The outcome seemed to court members entirely disproportionate to the original offence,” the court, which acts like a board of directors for the Bank of England, said in minutes of a March teleconference published on Wednesday.

“Court accepted Ms Hogg’s resignation with great regret,” the court said. “It was noted that her departure came at a critical time and represented a material loss to the management of the Bank, to which Ms Hogg had made a significant and lasting contribution.”

Hogg, who had been appointed Deputy Governor for Markets and Banking Charlotte Hogg resigned after the influential House of Commons’ Treasury Select Committee questioned whether she was fit for the role.

Hogg, who was picked to take over from Minouche Shafik as the new Deputy Governor for Markets and Banking in February, did not formally declare her brother’s role at Barclays when she joined the central bank in 2013.

Hogg’s brother, Quintin, is a director in group strategy at Barclays, raising concerns about conflicts of interest. In her new role, Hogg sat on the Monetary Policy Committee, the Financial Policy Committee, the Prudential Regulation Committee, and had an influence over bank regulation.

Her testimony to MPs on the Treasury Select Committee, who grilled her about the role on February 28, “was not accurate” as a result of the “oversight,” Hogg said in a letter to the committee chairman, Andrew Tyrie.

The Bank’s Court of Directors, which includes Governor Mark Carney and chairman Anthony Habgood acts like a board of directors, “setting the organisation’s strategy and budget and taking key decisions on resourcing and appointments,” according to the Bank of England.

Bradley Fried, deputy chair of the court, defended Hogg through her resignation, saying: “I definitely don’t believe it’s a hanging offence. It’s terribly unfortunate. It warrants grumpiness.”

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