Hector Sants bags top job at beefed up Bank of England
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Hector Sants, outgoing chief executive of the Financial Services Authority, will now stay on at the FSA before transferring to the Bank of England to be its first chief executive of prudential regulation and become deputy governor.
Mervyn King, governor of the Bank of England, made the announcement this evening at the annual Mansion House Dinner, in which a new style of two peaks financial regulation was formerly unveiled. As a result the Bank now has new responsibilities for both micro prudential and macro prudential regulation
Sants announced at the beginning of February 2010 that he was stepping down as chief executive officer of the regulator after three years.
King says: “I am absolutely delighted that Sants has agreed to remain at FSA and then move to the Bank to become the first chief executive of the new prudential regulator.
“In difficult circumstances, Sants has engineered major improvements to FSA’s prudential regulation. Andrew Bailey will head the Bank’s transition team and will be the first deputy chief executive of the prudential authority.
Together, Sants and Bailey form the perfect partnership to make the transition work and create the
new organisation.”
He went on to explain that in the new regime, regulation will have two different but complementar perspectives.
The first, as now, is a bottom-up perspective, focused on setting institution-specific capital requirements, with fixed requirements that banks could not breach.
The second is an overall perspective with a set of system-wide capital requirements that vary over the economic cycle.
He adds: “Judgements on the level of these capital buffers will be part of the remit of the new Financial Policy Committee.
“The prudential regulator, with its micro prudential responsibilities, and the Financial Policy Committee, with its macro prudential responsibilities, will need to work closely together, and that is one reason why it is sensible that they are both in the central bank.”
Readers' comments (7)
Anonymous | 17 Jun 2010 9:00 am
Well, you have to rub your eyes in disbelief. The FSA has failed so lets have it ran by the B.O.E and "by the way" we'll have the man thats just failed put in charge of the new regime. It's been said before, "it's not what you know, but WHO you know. The phrase "all !!! in the same pot springs to mind.
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Derek | 17 Jun 2010 9:03 am
I was worried sick he wouldn't find work after announcing his departure from the FSA. Recession, innit. But with the fine job he did there, he's the obvious choice for this new role.
How do you go about becoming one of 'the boys' out of 'jobs for the boys'?
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Anonymous | 17 Jun 2010 9:40 am
What a joke. Rearrange these words into a well known phrase - for, boys, jobs, the
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angry of Essex | 17 Jun 2010 9:48 am
How bizarre, Sants reward for be totally incompetant is getting the top job. Seems this deal was done prior to Sants resigning - jobs for the boys eh? Sants made a fortune from so-called Casino banking and now wants to be sainted as the man who saved the world.
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Julie | 17 Jun 2010 10:23 am
Does he get to keep his £108K bonus when he leaves the FSA for B of E? as announced last week?
I was at a loss when I heard this last night. This is the guy who emailed his entire staff the day of the election warning them that if they voted Conservative they might be voting themselves out of a job.
The only thing I can put this down to is that Sants has had a meeting with George Osbourne, blinded him with so many big words found in the depths of the Oxford Dictionary that George is now convinced how clever this man is..
Unbeleivable!
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Julie | 17 Jun 2010 10:41 am
Add:
Either that or Mr Sants knows TOO much - So it's better to keep him in the loop!..
Hmmmm makes ya wonder doesn't it!
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Sad Dirty Harry | 17 Jun 2010 10:51 am
This is like the old american wild west movies - clint eastwood's a hero in every movie he stars in!
Unfortunate for us, these guys think that applies to them. Of course, it never was their fault (its the director who shot the scene and not their acting)
This completely shatters my confidence in system, yet we moan about EU?
Dont you think it's time we put right whats going on in the backyard of our economy and for once, let the public clear out the trash. They ALL MUST GO.
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