OTTAWA—The surprise departure of Mark Carney, who was tapped Monday to lead the Bank of England, leaves a vacancy at Canada's central bank at a critical time when it is balancing a slowing economy against the need to rise rates as households build up debt to record levels.
Mr. Carney, who will remain as Governor of the Canadian central bank until June 1, 2013, said in a news conference with Finance Minister Jim Flaherty, that it was a "difficult decision, but the right decision."
Mr. Carney takes up his new job in July.
The Bank of Canada said its board of directors will shortly form a special committee comprised of independent directors to select Mr. Carney's successor. The appointment is subject to approval by Mr. Flaherty and the federal cabinet.
Great loss for Canada. I was enjoying Carney's assult overleveraged home ownership/speculation. That said I think he left at the right time professionally. I think consumer debt-to-income ratio in Canada has nowhere to go but down (and it won't be because everyone's going to be getting big pay raises!). As this delveraging happens, the domestic economy could be slow and underperforming.
To get the conspiracy theorists going it should be noted that the post with the BoE is normally eight years but he told them he would only stay for 5 and would leave in 2018.
Seriously though, if this position was a stepping stone for him what would the next step be? Head of the IMF or World Bank? Chairman of the Federal Reserve in the US? Canadian politics? Or big money in the private sector? There can't be many more steps for someone in his position.
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MYK - Supports Arizona to democtratically pass laws for the state of Arizona
Rudy was the only hope in 08
2011 Election: Cons 40% - Nanos 38% Ekos 34%
Inevitably, there are mixed feelings: satisfaction that a Canadian civil servant should be held in such regard abroad; annoyance that a foreign power should feel entitled to raid our highest offices, as if we were their farm team; gratitude for his service; disappointment that he did not finish his term.
On balance, however, the departure of Mark Carney as governor of the Bank of Canada, to take on the same position at the Bank of England, is probably for the best. It will of course be a great loss: he is largely deserving of his exalted reputation. That’s the point: he was becoming too big for the Bank. His ambitions were known to stretch beyond it; his persona was starting to overshadow it. Rock stars and central banks make an uncomfortable fit.
Edmonton’s definitely the formative community for me.
‘I would like to think I have the right values of integrity, hard work, prudence, good judgment and perseverance – all those Edmonton characteristics.’
I guess he left Edmonton before the mullet was invented.
The job comes with a million dollar a year salary, and he's going to need it to straighten out their banking system.
When I watched the news on this the discussion was that Britain wanted the Canadian like Banking safeguards implemented to fire wall them in the next recession.
It was funny seeing a man on the street interview in London when a guy stated "A Canadian in charge of our banks, that's creepy"
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My name is Ozymandias, King of Kings;
The job comes with a million dollar a year salary, and he's going to need it to straighten out their banking system.
When I watched the news on this the discussion was that Britain wanted the Canadian like Banking safeguards implemented to fire wall them in the next recession.
Well, good luck to him. The City has so much power in the British economy that any attempts to regulate or modify the way the financial services works will be met with threats to relocate to the contintent. Compared to Canada, the British economy is a basket case--Canada at least has resources and a bit of manufacturing left. Britain has the City and that's about all. And the government wants to divest itself further from the EU, which is the only thing that provides a critical mass to compete with the large and emerging economies around the world.
Bank of Canada to Start Search for a New Chief
