BoE deputy governor Paul Tucker quits after 33 years

Bank of England (BoE) deputy governor Paul Tucker has called time on a 33-year career at the central bank and will leave after he has “provided support to the new governor, Mark Carney, through the first months of his term of office”.

Tucker (pictured), whose five-year term as deputy governor for financial stability was due to end in February 2014, has worked at the Bank of England since 1980 and served under four governors. Carney, who starts on 1 July, will be the fifth.

Tucker was the front-runner to take over from Mervyn King as governor of the Bank of England last year, particularly after it appeared Carney had ruled himself out of the race. However, Tucker’s long association with the central bank, and his embroilment in the Libor scandal may have weighed against him. As that scandal broke last year, Tucker gave an interview to Risk, although the topic of Libor was ruled off limits.

A statement from the BoE said Tucker will continue to be “an active member of the G-20’s Financial Stability Board (FSB) and of other international committees” until he leaves the central bank. When he leaves, Tucker plans to spend “a period of time in academia in the US”, the statement said.

Some commentators have speculated that Tucker, aged 55, could have a final shot at the governorship after Carney is due to step down in 2018.

Tucker joined the Bank of England in 1980, soon after graduating from Cambridge University. He has worked on monetary policy, financial stability, markets, payment and settlement system infrastructure, and banking supervision. In 2002, he became the bank’s executive director for markets and a member of the Monetary Policy Committee.

As deputy governor, he became a member of the bank’s Court of Directors and, in 2011, of the new Financial Policy Committee. This year, he became a member of the board of the new Prudential Regulation Authority.

Internationally, he is a member of the FSB’s steering committee and chairs the FSB’s group on resolving large, complex financial firms. He spoke to Risk last month for twin articles on the resolution of banks and of central counterparties. He is a member of the board of the Bank for International Settlements, and also chairs the Committee on Payment and Settlement Systems (CPSS).

“It has been an extraordinary honour to serve at the Bank of England over the past 30 years. I am very proud that, through the bank and the wider central banking community, I have been able to make a contribution to monetary and financial stability,” said Tucker. “I will continue to do so in the coming months. I am looking forward to supporting Mark Carney as he arrives at the bank.”

The outgoing governor said he was “privileged” to have had Tucker as a close colleague and deputy during his time at the bank and as governor. “Paul’s contribution to the bank, to monetary policy, and more generally to public policy, both in the UK and in the world as a whole, has been enormous. Paul has more to contribute in the future and I am very pleased that he will support my successor, Mark Carney, as he settles into the bank,” King said.

As a Crown appointment, the UK government will appoint Tucker’s successor at the Bank of England. Accepting his resignation, chancellor of the exchequer George Osborne paid tribute to Tucker’s “intellectual capacity and independence”.

Responding to Osborne today, Tucker said the chancellor’s “recent reforms strengthen the development of the Bank of England as an institution that embodies the lessons of the past so as to ensure a more stable future”.

Andy Haldane, executive director for financial stability at the Bank of England, is one potential successor to Tucker. However, it is unclear if Carney would favour an internal promotion over the opportunity to nominate a deputy of his own choosing.

 

This article was first published on Risk

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