Mark Carney

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Mark Carney
OC
Mark Carney World Economic Forum 2013 (3).jpg
Carney at the World Economic Forum annual meeting at Davos, 2013
Governor of the Bank of England
Assumed office
July 1, 2013
Preceded by Mervyn King
Chairman of the Financial Stability Board
Assumed office
November 4, 2011
Preceded by Mario Draghi
Governor of the Bank of Canada
In office
February 1, 2008 – June 3, 2013
Preceded by David Dodge
Succeeded by Stephen Poloz
Personal details
Born Mark Joseph Carney
(1965-03-16) March 16, 1965 (age 51)
Fort Smith, Northwest Territories, Canada
Nationality
  • Canadian
  • Irish
Spouse(s) Diana Fox (m. 1994)
Children 4
Residence London, England
Alma mater
Religion Roman Catholic
Signature

Mark Joseph Carney, OC (born 16 March 1965) is a Canadian economist who currently serves as Governor of the Bank of England and Chairman of the G20's Financial Stability Board.[2]

Carney was previously the Governor of the Bank of Canada and began his career at Goldman Sachs before joining the Canadian Department of Finance.

As Governor of the Bank of England, Carney was criticised during the 2016 EU membership referendum for giving pro-EU statements, something which has led to Leave campaigners and sections of the media to call for his resignation.[3][4]

Early life[edit]

Carney was born 16 March 1965, in Fort Smith, Northwest Territories,[2][5] the son of Verlie Margaret (née Kemper) and Robert James Martin Carney.[6][7][8] When Carney was six, the family moved to Edmonton, Alberta. [5] Carney has three siblings—older brother Seán, younger brother Brian, and sister Brenda.[5][8] Carney attended St. Francis Xavier High School at Edmonton,[9] before studying at Harvard University.[5][10]

Carney graduated from Harvard with a bachelor's degree, with high honours in economics,[5] in 1988, before postgraduate studies at St Peter's College, Oxford, where he received masters and doctoral degrees in the same field (in 1993 and 1995, respectively).[11][10]

Career[edit]

Goldman Sachs[edit]

Carney spent thirteen years with Goldman Sachs[12] in its London, Tokyo, New York and Toronto offices. His progressively more senior positions included co-head of sovereign risk; executive director, emerging debt capital markets; and managing director, investment banking. He worked on South Africa's post-apartheid venture into international bond markets, and was involved in Goldman's work with the 1998 Russian financial crisis.[5]

Department of Finance[edit]

From November 2004 to October 2007, Carney was senior associate deputy minister and G7 deputy at the Canadian Department of Finance. He served under Liberal Finance Minister Ralph Goodale and Conservative Finance Minister Jim Flaherty. During this time Carney oversaw the Canadian Government's controversial plan to tax income trusts at source.[13] Carney was also the "point man" in the Canadian government's profitable sale of its 19-percent stake in Petro-Canada.[14][15]

Bank of Canada[edit]

Deputy Governor, 2003–2004[edit]

Carney first joined the Bank of Canada as a Deputy Governor on August 5, 2003.[citation needed] About a year later he was seconded to the Federal Department of Finance as Senior Associate Deputy Minister of Finance, effective November 15, 2004.[16]

Governor, February 2008–June 2013[edit]

Carney returned to the Bank of Canada in November 2007 after his appointment as Governor, and served as advisor to retiring Governor David Dodge before formally assuming Dodge's position on February 1, 2008.[17] Carney was selected over Paul Jenkins, the Senior Deputy Governor, who had been considered the front-runner to succeed Dodge.[18] Carney took on this role during the depths of the recent global financial crisis. At the time of his appointment, Carney was the youngest central bank governor among the G8 and G20 groups of nations.[19]

The financial crisis[edit]
Carney at the 2010 World Economic Forum, Davos, Switzerland

Carney's actions as Governor of the Bank of Canada are said to have played a major role in helping Canada avoid the worst impacts of the financial crisis that began in 2007.[20][21]

The epoch-making feature of his tenure as governor remains the decision to cut the overnight rate by 50 basis points in March 2008, only one month after his appointment. While the European Central Bank delivered a rate increase in July 2008, Carney anticipated the leveraged-loan crisis would trigger global contagion. When policy rates in Canada hit the effective lower-bound, the central bank combatted the crisis with the non-standard monetary tool: "conditional commitment" in April 2009 to hold the policy rate for at least one year, in a boost to domestic credit conditions and market confidence. Output and employment began to recover from mid-2009, in part thanks to monetary stimulus.[22] The Canadian economy outperformed those of its G7 peers during the crisis, and Canada was the first G7 nation to have both its GDP and employment recover to pre-crisis levels.[citation needed]

The Bank's decision to provide substantial additional liquidity to the Canadian financial system,[23] and its unusual step of announcing a commitment to keep interest rates at their lowest possible level for one year,[24] appear to have been significant contributors to Canada's weathering of the crisis.[25][page needed]

Canada's risk-averse fiscal and regulatory environment is also cited as a factor. In 2009 a Newsweek columnist wrote, "Canada has done more than survive this financial crisis. The country is positively thriving in it. Canadian banks are well capitalized and poised to take advantage of opportunities that American and European banks cannot seize."[26]

Carney earned various accolades for his leadership during the financial crisis: he was named one of The Financial Times 's "Fifty who will frame the way forward",[27] and of Time Magazine 's "2010 Time 100".[28] In May 2011, Reader's Digest named him "Editor's Choice for Most Trusted Canadian".[29]

In October 2012, Carney was named "Central Bank Governor of the Year 2012" by the editors of Euromoney magazine.[30]

International organisation memberships[edit]

On November 4, 2011, Carney was named Chairman of the Basel-based Financial Stability Board. In a statement, Carney credited his appointment to "the strong reputation of Canada's financial system and the leading role that Canada has played in helping to develop many of the most important international reforms". The three-year term is a part-time commitment, allowing Carney to complete his term at the Bank of Canada. While there has been no indication of his priorities as chairman, on the day of his appointment the Board published a list of 29 banks that were considered sufficiently large as to pose a risk to the global economy should they fail.[31][32] At his first press conference as Chairman of the FSB in January 2012, Carney laid out his key priorities for the board.[33]

Carney served as Chairman of the Bank for International Settlements' Committee on the Global Financial System from July 2010 until January 2012.[34] Carney is also a member of the Group of Thirty, an international body of leading financiers and academics, and of the Foundation Board of the World Economic Forum.[35][36] Carney attended the annual meetings of the Bilderberg Group in 2011 and 2012.[37][38]

Carney is member of the International Advisory Board at the Blavatnik School of Government (University of Oxford).[citation needed]

Governor of the Bank of England[edit]

On November 26, 2012, UK Chancellor of the Exchequer, George Osborne, announced the appointment of Carney to be Governor of the Bank of England. Carney succeeded Sir Mervyn King on July 1, 2013.[39] He is the first non-Briton to be appointed to the role since the Bank was established in 1694. The Bank of England was given additional powers from 2013, such as the ability to set bank capital requirements.[40]

Prior to taking up the post, Carney had already indicated disagreement with the Bank of England's Executive Director of Financial Stability Andy Haldane, specifically on leverage ratios and on bank break-ups. He has been quoted as saying Haldane does not have a "proper understanding of the facts" on bank regulation.[22] Though the term is officially eight years, Carney has said that he intends to stand down after five. He is likely to have been offered a total pay package of about £624,000 ($990,000) per year, approximately £100,000 ($160,000) more per year than his predecessor.[39]

EU Referendum[edit]

Carney has been accused of making pro-remain statements in the British EU referendum warning of risks to the economy.[41][42][43] Several pro-leave campaigners have questioned the legitimacy of his claims,[44] as well as whether he should be expressing such views at all.[45] However, Carney has made it clear he feels it his duty to speak up on such issues.[46]

Following the 'Leave' vote in the referendum, Carney was put under pressure to resign as a result of his pro-Remain stance during the campaign.[3][4]

Personal life[edit]

Carney met his wife, Diana Fox (sister-in-law of Lord Rotherwick),[citation needed] a British economist specializing in developing nations, while at the University of Oxford.[29] She is said to be active in various environment and social justice causes.[47] The couple married in July 1994[48] while he was finishing his doctoral thesis.[citation needed] They have four daughters and lived in the Rockcliffe Park neighbourhood of Ottawa before moving to London in 2013.[5]

During his Harvard years, Carney was back-up goalie for the school's ice hockey team.[5][49][50] Carney continued playing hockey with the Oxford University Ice Hockey Club while studying at Nuffield College, Oxford.[51]

Carney completed the 2015 London Marathon in 03:31:22, shaving 17 minutes off his time at the 2011 Ottawa Marathon.[citation needed]

In addition to Canadian citizenship, Carney also holds Irish citizenship.[52]

Honours and distinctions[edit]

References[edit]

  1. ^ "Mark Carney". Today. August 8, 2013. BBC Radio 4. Retrieved January 18, 2014. 
  2. ^ a b "Bank of Canada Governor Mark Carney". cbc.ca. Retrieved June 24, 2016. 
  3. ^ a b "It's time for Mr Carney to quit the Bank of England". Retrieved 2016-09-24. 
  4. ^ a b "Bank of England boss Mark Carney must resign for 'disgraceful scaremongering' during the EU referendum campaign, says ex-Chancellor Lord Lawson". 2016-09-23. Retrieved 2016-09-24. 
  5. ^ a b c d e f g h Scoffield, Heather (January 25, 2008). "Mark Carney takes up his mission [March 30, 2009 update]" (print, online news report). The Globe and Mail: print pages B1, B4–5. Retrieved June 24, 2016.  Archived July 16, 2015, at the Wayback Machine.
  6. ^ Globe and Mail Staff (December 14, 2009). "Carney, Robert James, Ph.D., Professor Emeritus, University of Alberta" (obituary). The Globe and Mail. Retrieved June 24, 2016. 
  7. ^ Chronicle Staff (1957). "Marriages: Carney-Kemper" (bulletin entry). UBC Alumni Chronicle, Autumn. Vancouver, BC, CAN: University of British Columbia: 38. Retrieved June 24, 2016. Carney-Kemper. Robert James Martin Carney, B.A.’57, to Verlie Margaret Kemver. 
  8. ^ a b "Robert Carney's Obituary on Edmonton Journal". Edmonton Journal. Retrieved 2016-07-20. 
  9. ^ "Mark Carney: From Edmonton Journal paperboy to Bank of England". 2012-11-26. Retrieved 2016-07-20. 
  10. ^ a b "Mark Carney - Governor, Bank of England | Bank of England". www.bankofengland.co.uk. Retrieved 2016-07-20. 
  11. ^ CBC News Staff (October 4, 2007). "Mark Carney named next Bank of Canada governor". CBC News. Ottawa, CA: The Crown. Archived from the original (news brief) on October 8, 2007. Retrieved June 24, 2016. 
  12. ^ "Brexit, Financial Volatility and the Bank of England. Mark Carney, Governor of the … "Bank of Goldman Sachs"". Global Research. Global Research. 
  13. ^ Willis, Andrew; Grant, Tavia; Scoffield, Heather (October 4, 2007). "Playing a new game, in a new arena" (business news report). The Globe and Mail. Retrieved June 24, 2016. 
  14. ^ "The governor gets his hands dirty". theglobeandmail.com. Retrieved June 24, 2016. 
  15. ^ Reuters Staff (October 4, 2007). "Key facts on Mark Carney, next Bank of Canada chief". Reuters. Retrieved June 24, 2016. 
  16. ^ Bank of Canada Staff (October 21, 2004). "Deputy Governor Mark Carney appointed Senior Associate Deputy Minister of Finance" (press release). Ottawa, CAN: Bank of Canada. Retrieved June 24, 2016. 
  17. ^ Bank of Canada Staff (October 4, 2007). "Mark Carney Appointed Governor of the Bank of Canada" (press release). Ottawa, CAN: Bank of Canada. Retrieved June 24, 2016. 
  18. ^ Parkinson, David (October 29, 2009). "Paul Jenkins leaving Bank of Canada". The Globe and Mail. Toronto. 
  19. ^ Vieira, Paul (October 4, 2007). "Carney vaults over heir apparent for Bank of Canada top job". National Post. Retrieved January 4, 2008. 
  20. ^ "Archived copy". Archived from the original on June 29, 2011. Retrieved February 12, 2011. 
  21. ^ Hornbrook, Mike (January 29, 2011). "Mark Carney: Interesting times". cbc.ca. Retrieved June 24, 2016. 
  22. ^ a b Verma, Sid (2012). "Mark Carney: Finance's new statesman". Euromoney (October). Retrieved June 24, 2016. 
  23. ^ Zorn, Lorie; Wilkins, Carolyn & Engert, Walter (2009). "Bank of Canada Liquidity Actions in Response to the Financial Market Turmoil" (PDF). Bank of Canada Review. Ottawa, CAN: Bank of Canada (Autumn). Retrieved June 24, 2016. 
  24. ^ Bank of Canada Staff (April 21, 2009). "Bank of Canada lowers overnight rate target by 1/4 percentage point to 1/4 per cent and, conditional on the inflation outlook, commits to hold current policy rate until the end of the second quarter of 2010" (press release). Ottawa, CAN: Bank of Canada. Retrieved June 24, 2016. 
  25. ^ IMF Staff (December 10, 2010). "Canada: 2010 Article IV Consultation—Staff Supplement, Staff Report, and Public Information Notice on the Executive Board Discussion (IMF Country Report 10/377)" (PDF). Retrieved November 26, 2012. [page needed]
  26. ^ Zakaria, Fareed (February 16, 2009). "Worthwhile Canadian Initiative" (print, online perspective). Newsweek. New York, NY: print pages B1, B4–5. Retrieved June 24, 2016. (subscription required (help)). 
  27. ^ Financial Times Staff (March 10, 2009). "Fifty who will frame a way forward". Financial Times. Retrieved June 24, 2016. (subscription required (help)). 
  28. ^ Kiviat, Barbara (April 29, 2010). "The 2010 TIME 100 - TIME". Retrieved June 24, 2016 – via www.time.com. 
  29. ^ a b "One-on-One with Mark Carney". readersdigest.ca. April 21, 2011. Retrieved June 24, 2016. 
  30. ^ Horwood, Clive (Ed.) (October 11, 2012). "Carney named Euromoney Central Bank Governor of the Year 2012". Euromoney (October). Archived from the original on October 16, 2012. Retrieved June 24, 2016. 
  31. ^ Reguly, Eric (November 4, 2011). "Carney takes reins of global banking watchdog". The Globe and Mail. Toronto, CA. Retrieved November 4, 2011. 
  32. ^ Argitis, Theophilos. "FSB Favorite Carney May Not Have to Label Canada Banks Systemic". bloomberg.com. Retrieved June 24, 2016. 
  33. ^ "Tough player battles to tame banking system - FT.com". ft.com. Retrieved June 24, 2016. 
  34. ^ "Mark Carney appointed Chairman of the Committee on the Global Financial System". Bank for International Settlements. June 29, 2010. Retrieved February 11, 2015. 
  35. ^ "Current Members". Group of Thirty. Retrieved August 9, 2013. 
  36. ^ "The World Economic Forum Leadership Team". World Economic Forum. Retrieved November 26, 2012. 
  37. ^ "Bilderberg Meetings: St. Moritz, Switzerland, June 9-12, 2011: Final List of Participants". Bilderberg Meetings. June 9, 2011. Retrieved August 9, 2013. 
  38. ^ "Bilderberg Meetings: Chantilly, Virginia, USA, May 31-June 3, 2012: Final List of Participants". Bilderberg Meetings. May 31, 2012. Retrieved August 9, 2013. 
  39. ^ a b Peston, Robert (November 26, 2012). "Mark Carney named new Bank of England governor". bbc.co.uk. Retrieved June 24, 2016. 
  40. ^ Schumpeter (November 26, 2012). "The Bank of England's new governor: Canada home and dry". The Economist. Retrieved June 24, 2016. 
  41. ^ "Mark Carney: EU exit is 'biggest domestic risk'". BBC News. March 8, 2016. Retrieved May 13, 2016. 
  42. ^ "Brexit vote may spark recession, Mark Carney warns". BBC News. May 12, 2016. Retrieved May 13, 2016. 
  43. ^ "Bank boss Mark Carney warns Brexit vote could trigger 'technical recession'". Mail Online. May 12, 2016. Retrieved May 13, 2016. 
  44. ^ "Iain Duncan Smith casts doubt on Mark Carney's Brexit warning". BBC News. May 12, 2016. Retrieved May 13, 2016. 
  45. ^ "Bank chief Mark Carney should be fired over Brexit recession warning—Tory MP". Mail Online. May 12, 2016. Retrieved May 13, 2016. 
  46. ^ "UK Bank governor Carney says is 'duty' to speak of Brexit risks". BBC News. April 19, 2016. Retrieved May 13, 2016. 
  47. ^ Swaine, Jon (November 26, 2012). "New Bank of England Governor Mark Carney's wife: An eco-warrior who says banks are rotten". The Telegraph. Retrieved June 24, 2016. 
  48. ^ General Register Office. England and Wales Civil Registration Indexes. Bullingdon Registration District, Oxfordshire. Volume 699 Page 574.
  49. ^ Archived July 16, 2015, at the Wayback Machine.
  50. ^ Cobb, Chris (November 26, 2012). "Mark Carney profile: Our top banker and the bottomline". Ottawa Citizen. Postmedia Network. Retrieved November 26, 2012. 
  51. ^ Waldie, Paul (June 28, 2013). "Mark Carney not only played goal for the Oxford Blues hockey team, he also managed it". The Globe and Mail. Retrieved June 24, 2016. 
  52. ^ "Full transcript: Mark Carney talks to Jon Snow". channel4.com. 2013-11-13. Retrieved June 24, 2016. 
  53. ^ General, The Office of the Secretary to the Governor. "The Governor General of Canada". gg.ca. Retrieved June 24, 2016. 
  54. ^ "Order of Malta International Strategic Planning Conference: Venice, Italy" (PDF). Orderofmaltamerican.org. Retrieved 2016-06-24. 
  55. ^ "Mark Carney's Speech at the Mansion House Bankers and Merchants Dinner, London - Bank of England". bankofengland.co.uk. Retrieved June 24, 2016. 

Further reading[edit]

External links[edit]

Business positions
Preceded by
David Dodge
Governor of the Bank of Canada
2008–2013
Succeeded by
Stephen S. Poloz
Preceded by
Mario Draghi
Chairman of the Financial Stability Board
2011–present
Incumbent
Preceded by
Mervyn King
Governor of the Bank of England
2013–present