There have been mixed reactions to our report on Saturday that the Conservatives might opt for a banker to serve as the next governor of the Bank of England.
Many in the City believe John Varley, chief executive of Barclays, would be an excellent choice. He has a sharp mind, long experience and reassuringly conservative dress sense. Yet Mr Varley also has his critics, given Barclays’ lucky escape from the financial crisis.
A less controversial choice would be Stephen Green, executive chairman of HSBC. Another name being canvassed is Peter Sands, the youthful Standard Chartered boss.
It is not that long since there was a banker in the job — Robin Leigh-Pemberton became governor after chairing NatWest — but that was before the Bank had responsibility for monetary policy, which argues for someone with more economics experience. This would also count against Lord Turner, the FSA’s chairman, though he would tick many other boxes including experience of financial regulation, which the Tories want to fold back into the Bank.
All this assumes the Tories would want to replace Mervyn King before his term ends in June 2013. Their proposed rearrangement of the financial furniture might give them the cover to replace Mr King, who is unenthusiastic about having responsibility for all financial regulation. Yet any perception that the Bank’s independence had been compromised would be a high price to pay, however well-qualified Mr King’s successor.