Goldman Sachs Hired As World Banking Regulator

04/11/2011 19:02

Bank of Canada governor Gov. Mark Carney hired as world banking regulator

CANNES, France - Mark Carney, the governor of the Bank of Canada and former investment banker, has been appointed by G20 leaders to serve as a global watchdog on the world's financial fat cats.

The sharp-tongued 46-year-old is being handed the task, in turbulent times, of keeping the world's biggest banks from the kind of risky behaviour that ran the world's economy off the rails in 2008.

He takes over the part-time chairmanship of the Financial Stability Board from outgoing chair Mario Draghi, Italy's top central banker. Carney remains Bank of Canada governor.

And he does so at a time when G20 leaders are giving the international board more staff and resources and greater "name and shame" powers in an effort to rein in global financial giants.

Carney, whose seven-year term at the Bank of Canada expires in 2015, has been a strong advocate of new, stringent regulations for banks.

He spent 13 years as an investment banker with Goldman Sachs , working in London, New York, Tokyo and Toronto, giving Carney an inside view of the industry he's now charged with regulating. Only the world's biggest financial institutions — none of which are Canadian — fall under the FSB's mantle.

Widely expected to get the part-time posting, Carney may have sealed his appointment in September with his abrupt response to American bankers chafing at looming new rules.

"If some institutions feel pressure today, it is because they have done too little for too long, rather than because they are being asked to do too much, too soon," he told an audience at the Institute of International Finance in Washington.

It's the kind of blunt, direct talk that has made Carney a darling of the international financial press and a nice fit for G20 leaders hoping to flex some muscle.

Last year, Time Magazine listed him among the world's most influential people.

It is not often Canadians are considered for top jobs at global financial institutions, but Carney appears to be an exception.

Earlier this year, he appeared in a London bookmaker's list for the International Monetary Fund's top job, which eventually went to France's Christine Lagarde.

His choice as FSB chairman is seen as a geographic tradeoff between the United States and Europe.

As Carney himself put it in September amid rumours of appointment: "There are many people who think a Canadian would be suitable for the role."

Last year, Carney was named chairman to a committee on financial stability at the Bank for International Settlements, of which the FSB is a part.
The Canadian Press, November 4, 2011

Bank Of Canada Adds Another Goldman Sachs Alum.
Mark Carney's former colleague Tim Hodgson special adviser to the Bank of Canada. Hodgson, the chief executive officer of Goldman Sachs Canadian operation, will spend 18 months as a special adviser to Carney beginning in September 2010. Before working in government, Carney spent over a decade at Sachs and worked with Hodgson for two years at Goldman in New York.
Liberal leader Michael Ignatieff questioned about the Goldman Sachs influence in the Bank of Canada.

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