LONDON — Bank of England Chief Operating Officer and Deputy Governor for Markets and Banking Charlotte Hogg resigned from her post on Tuesday after a scandal involving the failure to disclose her brother’s job working at Barclays as a potential conflict of interest. That failure came despite Hogg having played an important role in creating the BoE’s guidelines for such disclosures.
While she was the bank’s COO for three years, she had only held the role of deputy governor for a matter of weeks, and her departure is a serious headache for the central bank in terms of staffing.
Hogg said in her resignation letter that she will work through any transitional period, though the bank and the Treasury are likely to favour having a replacement in place in short order.
Paying around £270,000 per year, with an additional pension contribution of as much as £80,000, the deputy governor’s job is an important one, with a huge set of responsibilities. In advertising the job last November, the Treasury (which is responsible for appointing the governor and deputy governors) wrote:
“The successful candidate will need to demonstrate the ability to manage a large number of staff and a diverse set of workstreams. He or she will be a strong communicator, have outstanding interpersonal skills and will be a person of undisputed integrity and standing.”
Who is thought to be in contention?
It is early days in terms of naming potential replacements for Hogg, but given that Hogg was only appointed in February, many of the frontrunners from the previous search for a new deputy governor could still be in with a shot to take the role vacated by Hogg.
Prior to Hogg’s appointment, there were three other candidates thought to be favoured by the Bank of England, with two bank insiders, and one external possibility.
Among the bank insiders thought to be in with a shout was executive director for markets Chris Salmon, who has spent more than 20 years with the BoE in a series of different roles, including being private secretary to former Governor Mervyn King, as well as chief cashier.
According to the bank’s website, Salmon is currently “responsible for all Bank operations in financial markets; management of the Bank’s balance sheet and the UK’s official foreign exchange reserves on behalf of HMT; and delivering market intelligence for monetary and financial stability.”
These responsibilities dovetail nicely with what is expected from a deputy governor, making Salmon a strong candidate.
With Kristin Forbes set to leave the bank at the end of June, the Monetary Policy Committee will be composed entirely of white men unless a female replacement is appointed. That could play into the hand’s of bank outsider, and City bigwig Elizabeth Corley, who has frequently been linked with senior roles at regulators like the FCA and with jobs at the bank.
Corley was formerly CEO and managing director of Allianz Global Investors, and is currently the firm’s vice chair. She has also taken part in a number of major industry gatherings regarding market regulation, including acting as the City’s representative to the Fair and Effective Markets Review in 2016.
Finally among candidates tipped to succeed Hogg as deputy governor is Andrew Hauser, a veteran of 25 years with the BoE. Hauser is currently e
xecutive director for banking, payments and financial resilience, overseeing, in the bank’s words “the assessment of financial risks to the Bank of England’s balance sheet; the operation and strategic development of the Bank’s provision of payment system services.”
This includes “the Real-Time Gross Settlement infrastructure, which settles over £500bn of daily sterling payments and securities transactions; and the Bank’s wholesale and retail banking operations, including the provision of Emergency Liquidity Assistance.”
Hauser has extensive experience dealing with the central bank’s key policy committees, all of which he would sit on if appointed, giving him something of a competitive advantage.
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