Comments on: John Gieve - financial fall guy? http://blog.prospectblogs.com/2008/07/02/john-gieve-financial-fall-guy/ Tue, 02 Dec 2008 20:31:28 +0000 http://wordpress.org/?v=2.6.5 By: Mark http://blog.prospectblogs.com/2008/07/02/john-gieve-financial-fall-guy/#comment-4826 Mark Thu, 03 Jul 2008 22:25:04 +0000 http://blog.prospectblogs.com/?p=755#comment-4826 Just for the record John, while I strongly support the principle that financial regulators and central bankers should be held accountable for their failings, John Gieve's departure from the Bank of England does not gratify me in any way. Rather it highlights the fact that the person most responsible for the Bank of England's recent failings has just embarked on a second five year term of office. An important part of the accountability principle is that the appropriate person should be held accountable, which does not appear to be the case in this instance. On your second point, I do not think that the Bank of England should appoint yet another insider to a senior role. It should bring in someone who, first, has some practical experience of financial markets and current risk management techniques, and, second, has independence of mind that has not been compromised by a long career working at the Bank. Such a move would have the additonal benefit of sending a signal to the bright young economists working in Threadneedle Street that if they want to make it to the top they should get out into the markets and prove themselves first, perhaps returning to a senior job at the Bank later in their careers. This would be far better for them and for the rest of us, than staying-put and playing the in-house patronage game for the next 20 years. Mark Hannam Just for the record John, while I strongly support the principle that financial regulators and central bankers should be held accountable for their failings, John Gieve’s departure from the Bank of England does not gratify me in any way. Rather it highlights the fact that the person most responsible for the Bank of England’s recent failings has just embarked on a second five year term of office. An important part of the accountability principle is that the appropriate person should be held accountable, which does not appear to be the case in this instance.

On your second point, I do not think that the Bank of England should appoint yet another insider to a senior role. It should bring in someone who, first, has some practical experience of financial markets and current risk management techniques, and, second, has independence of mind that has not been compromised by a long career working at the Bank. Such a move would have the additonal benefit of sending a signal to the bright young economists working in Threadneedle Street that if they want to make it to the top they should get out into the markets and prove themselves first, perhaps returning to a senior job at the Bank later in their careers. This would be far better for them and for the rest of us, than staying-put and playing the in-house patronage game for the next 20 years.

Mark Hannam

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