Mark Carney

Mark Carney OC
Carney at the World Economic Forum annual meeting at Davos, 2013
Governor of the Bank of England
Incumbent
Assumed office July 1, 2013
Preceded by	Mervyn King
Chairman of the Financial Stability Board
Incumbent
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 March 16, 1965 Fort Smith, Northwest Territories, Canada
Nationality	Canadian Irish
Spouse(s)	Diana Fox
Children	4
Residence	London, UK
Alma mater	Harvard University University of Oxford
Religion	Roman Catholic
Signature
Mark Carney's voice from the BBC programme Today, August 8, 2013[1]

Mark Joseph Carney, OC (born March 16, 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. Carney has been credited with shielding Canada from the worst effects of the late-2000s financial crisis, and has earned recognition by the Financial Times and Time magazine as a top figure in the financial world.

Early life

Carney was born in Fort Smith, Northwest Territories, the son of Verlie Margaret (Kemper) and Robert James Martin Carney.^[3][4] His father was a High School principal there, and later a Professor of Education at the University of Alberta in Edmonton, Alberta, where the family moved when Carney was six years old. Carney has three siblings — older brother Seán, younger brother Brian and sister Brenda. His mother was an elementary school teacher before having children. Carney and his brothers all attended St. Francis Xavier High School at Edmonton before studying at Harvard University.^[5] In addition to Canadian citizenship, Carney also holds Irish citizenship.^[6]

Carney completed a bachelor's degree (BA) in Economics at Harvard in 1988, before postgraduate studies at St Peter's College, Oxford taking the degree of MPhil in 1993; his thesis for the degree of Doctor of Philosophy (DPhil) from Oxford University was entitled The Dynamic Advantage of Competition.^[7]

Career

Goldman Sachs

Carney spent thirteen years with Goldman Sachs 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

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.^[8]

Carney was also the "point man" in the Canadian government's profitable sale of its 19-percent stake in Petro-Canada.^[9][10]

Bank of Canada

Deputy Governor, 2003–2004

Carney first joined the Bank of Canada as a Deputy Governor on August 5, 2003.^[11] About a year later he was seconded to the Federal Department of Finance as Senior Associate Deputy Minister of Finance, effective November 15, 2004.^[12]

Governor, February 2008 – June 2013

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.^[13] Carney was selected over Paul Jenkins, the Senior Deputy Governor, who had been considered the front-runner to succeed Dodge.^[14] 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.^[15]

The financial crisis

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.^[16][17]

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.^[18] 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.

The Bank's decision to provide substantial additional liquidity to the Canadian financial system,^[19] and its unusual step of announcing a commitment to keep interest rates at their lowest possible level for one year,^[20] appear to have been significant contributors to Canada's weathering of the crisis.^[21]

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."^[22]

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",^[23] and of Time Magazine 's "2010 Time 100".^[24] In May 2011, Reader's Digest named him "Editor's Choice for Most Trusted Canadian".^[25]

In October 2012, Carney was named "Central Bank Governor of the Year 2012" by the editors of Euromoney magazine.^[26]

International organisation memberships

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.^[27][28] At his first press conference as Chairman of the FSB in January 2012, Carney laid out his key priorities for the board.^[29]

Carney served as Chairman of the Bank for International Settlements' Committee on the Global Financial System from July 2010 until January 2012.^[30] 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.^[31][32] Carney attended the annual meetings of the Bilderberg Group in 2011 and 2012.^[33][34]

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

Governor of the Bank of England

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.^[35] 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.^[36]

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.^[37]

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.^[35]

Personal life

Carney met his wife, Diana Fox (sister-in-law of Lord Rotherwick),^[38] a British economist specializing in developing nations, while at the University of Oxford.^[25] She is said to be active in various environment and social justice causes.^[39] The couple married while he was finishing his doctoral thesis in the mid-1990s. 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.^[40][41] Carney continued playing hockey with the Oxford University Ice Hockey Club while studying at Nuffield College, Oxford.^[42]

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

Honours and distinctions

SMOM roundel

• - Order of Canada^[43]
• - Knight of Malta^[44]
• - Freeman of the City of London^[45]

See also

• Order of Malta

References

1. "Mark Carney". Today. August 8, 2013. BBC Radio 4. Retrieved January 18, 2014.
2. "Bank of Canada's Mark Carney". CBC. November 3, 2011. Retrieved November 19, 2011.
3. http://v1.theglobeandmail.com/servlet/story/Deaths.20091214.93216996/BDAStory/BDA/deaths
4. http://www.library.ubc.ca/archives/pdfs/chronicle/AL_CHRON_1957_3.pdf
5. Scoffield, Heather (January 26, 2008). "Mark Carney takes up his mission". The Globe and Mail (Toronto). pp. B1, B4–5. Retrieved January 29, 2008.
6. Full transcript: Mark Carney talks to Jon Snow (13.11.2013)
7. "Mark Carney named next Bank of Canada governor". CBC News. October 4, 2007. Archived from the original on July 3, 2007.
8. "Playing a new game, in a new arena". Globe and Mail. October 4, 2007. Retrieved February 11, 2011.
9. "The governor gets his hands dirty." Globe and Mail. August 26, 2009. . Retrieved February 11, 2011.
10. "Key facts on Mark Carney, next Bank of Canada chief". Reuters. October 4, 2007. Retrieved February 11, 2011.
11. "Bank of Canada announces Deputy Governor appointments" Bank of Canada press release
12. "Deputy Governor Mark Carney appointed Senior Associate Deputy Minister of Finance" Bank of Canada press release.
13. "Mark Carney Appointed Governor of the Bank of Canada.". Bank of Canada. October 4, 2007. Retrieved August 7, 2013.
14. Parkinson, David (October 29, 2009). "Paul Jenkins leaving Bank of Canada". The Globe and Mail (Toronto).
15. Vieira, Paul (October 4, 2007). "Carney vaults over heir apparent for Bank of Canada top job". National Post. Retrieved January 4, 2008.
16. "Carney Shows How Canada Controls Risk So Central Banks Can Too", Bloomberg.com, November 20, 2009; retrieved February 11, 2011.
17. "Mark Carney: Interesting times", cbc.ca, January 31, 2011; retrieved February 11, 2011.
18. "Mark Carney: Finance’s new statesman", euromoney.com, October 2012; accessed March 30, 2015.
19. "Bank of Canada Liquidity Actions in Response to the Financial Market Turmoil". Bank of Canada Review (Autumn 2009); accessed March 30, 2015.
20. "Bank of Canada lowers overnight rate target by 1/4 percentage point to 1/4 per cent..." (press release), bank-banque-canada.ca; April 21, 2009.
21. "Canada: 2010 Article IV Consultation--Staff Supplement; Staff Report; and Public Information Notice on the Executive Board Discussion; IMF Country Report 10/377; December 10, 2010" (PDF). Retrieved November 26, 2012.
22. "Worthwhile Canadian Initiative". Newsweek (New York). February 9, 2007. Retrieved February 11, 2011.
23. "Fifty who will frame a way forward", ft.com, March 10, 2009; retrieved February 11, 2011.
24. "The 2010 TIME 100", time.com, April 29, 2010; retrieved February 11, 2011.
25. "One-on-One with Mark Carney", readersdigest.ca, May 2011; retrieved May 10, 2011.
26. "Carney named Euromoney Central Bank Governor of the Year 2012". Euromoney. October 11, 2012. Archived from the original on October 16, 2012. Retrieved November 26, 2012.
27. Reguly, Eric (November 4, 2011). "Carney takes reins of global banking watchdog". The Globe and Mail (Toronto). Retrieved November 4, 2011.
28. Deen, Mark, "Carney Said to Be Lead Candidate for FSB Role as Decision Looms", bloomberg.com, October 16, 2011.
29. "Tough player battles to tame global banking system", Financial Times (London) January 15, 2012.
30. "Mark Carney appointed Chairman of the Committee on the Global Financial System". Bank for International Settlements. June 29, 2010. Retrieved February 11, 2015.
31. "Current Members". Group of Thirty. Retrieved August 9, 2013.
32. "The World Economic Forum Leadership Team". World Economic Forum. Retrieved November 26, 2012.
33. "Bilderberg Meetings: St. Moritz, Switzerland, June 9-12, 2011: Final List of Participants". Bilderberg Meetings. June 9, 2011. Retrieved August 9, 2013.
34. "Bilderberg Meetings: Chantilly, Virginia, USA, May 31-June 3, 2012: Final List of Participants". Bilderberg Meetings. May 31, 2012. Retrieved August 9, 2013.
35. "Mark Carney named new Bank of England governor", BBC, November 26, 2012.
36. The Bank of England's new governor: Canada home and dry The Economist November 26, 2012
37. "Mark Carney: Finance’s new statesman" Euromoney October 2012.
38. www.burkespeerage.com
39. Swaine, Jon, "New Bank of England Governor Mark Carney's wife: an eco-warrior who says banks are rotten", The Daily Telegraph (London), November 27, 2012.
40. "Mark Carney takes up his mission". Globe and Mail. January 25, 2008. February 11, 2011. Archived July 16, 2015, at the Wayback Machine.
41. Cobb, Chris (November 26, 2012). "Mark Carney profile: Our top banker and the bottomline". Ottawa Citizen (Postmedia Network). Retrieved November 26, 2012.
42. Waldie, Paul, "Mark Carney not only played goal for the Oxford Blues hockey team, he also managed it", theglobeandmail.com, June 28, 2013.
43. www.gg.ca
44. www.orderofmaltaamerican.org
45. www.bankofengland.co.uk

External links

• Biography from the Bank of England