Newspaper article The Evening Standard (London, England)

Gieve Was Not Up to Bank Job, Says City; Taking Over: Charlie Bean, the Bank's Chief Economist, Tipped to Be Deputy Governor

Newspaper article The Evening Standard (London, England)

Gieve Was Not Up to Bank Job, Says City; Taking Over: Charlie Bean, the Bank's Chief Economist, Tipped to Be Deputy Governor

Article excerpt

Byline: HUGO DUNCAN

THE shock departure of Deputy Governor Sir John Gieve from the Bank ofEngland was welcomed in the City today.

Meanwhile, the Bank was preparing to appoint its chief economist Charlie Beanto replace a second departing Deputy, Rachel Lomax.

Gieve quit last night as Chancellor Alistair Darling outlined plans to reformhow the Bank deals with financial stabilitythe area for which Gieve was responsible.

City sources said Gieve was not up to the job and was exposed by the collapseof Northern Rockbut many did not wish to comment on the record for fear of retribution from theBank and the Financial Services Authority.

Privately they said his mauling at the hands of MPs after the run on theNewcastle mortgage lender meant his days were numbered.

Gieve quit as Darling outlined plans to set up a financial stability committeeto work alongside the monetary policy committee. His exit, in the spring, pavesthe way for the Bean to replace Lomax in her role overseeing monetary policy.

Paul Tucker is tipped to be in charge of banking stability.

The Treasury had been backing Tucker to replace Lomax while Bank GovernorMervyn King was understood to be trumpeting Bean. Two vacancies mean Whitehalland Threadneedle Street can be satisfied.

Peter Hahn, fellow of the Cass Business School, said: "Gieve was the wrong man,with the wrong credentials in the wrong place at the wrong time. He didn't havethe right background for this job.

"The Bank needs to look towards people with 10 or maybe 20 years of experiencein the City to fill these top jobs. It's easy to plan how to avoid the mistakesyou made last year, but they need people who can predict the new mistakes thatcould lie ahead. Gieve's appointment was made by the Government. That exposedthe fallacy of the idea that we have an independent Bank of Englanda theme that has just been replayed in the battle for the Deputy Governor'sjob." David Buik, City commentator at BGC Partners, said Gieve "did not coverhimself in glory in the handling of banking stability with particular referenceto Northern Rock".

Gieve is said to have tinkered with his statement on his BlackBerry as theChancellor and the Governor were speaking. …

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