BOE Deputy Governor Charlotte Hogg Resigns After Critical Report

  • BOE Deputy Governor Charlotte Hogg Resigns After Critical Report

BOE Deputy Governor Charlotte Hogg Resigns After Critical Report

In response, Carney says: "While I fully respect her decision taken in accordance with her view of what was the best for this institution, I deeply regret that Charlotte Hogg has chosen to resign from the Bank of England".

Deputy Bank of England governor Charlotte Hogg has resigned following harsh criticism by MPs on the Treasury Select Committee (TSC) after barely two weeks in the job.

That's despite the fact that she was handpicked by Mark Carney in one of his first appointments after becoming governor in 2013 and was one of his most trusted lieutenants.

Hogg, a member of one of Britain's influential political families, would have been in charge of the central bank's asset purchases in her role as the deputy governor.

In theory, the Treasury committee has only an advisory role when it comes to appointments to the Bank of England, but in this case the strongly-worded condemnation of Hogg's behaviour made her position untenable.

He went on to praise her role in overhauling the Bank's management and operations, saying she had "inspired countless colleagues at the Bank and attracted a new cohort of professionals to it". Namely, her failure for years, despite repeated prompting by the Bank's procedures, to amend her mistake, then, when finally admitting it on March 2, her breezy claim that no conflict of interest would ever occur in her new role.

Over the weekend, several bankers had suggested that, if she remained in post, it would create the opportunity for employees of bank-regulated companies to use the "Hogg defence" if they were ever challenged by the regulator.

The Bank's code of conduct requires such connections to be declared.

"We will do everything we can to honor her work for the people of the United Kingdom by building on her contributions".

"I have made no secret of my brother's job - indeed it was I who informed the Treasury Select Committee, before my hearing".

This will see the senior management responsibility for Bank-wide risk management moving from the chief operating officer (COO) to the deputy governor for prudential regulation Sam Woods.

Andrew Tyrie's committee did not agree.

Hogg will still be present for this week's MPC decision, to be announced on Thursday, a Bank spokesman said.

Ms Hogg is not the first BOE figure to face criticism in recent years.

A highly capable individual by all accounts, Ms Hogg - and all other public servants for that matter - have a duty to uphold the highest standards of probity at all times to avoid such conflicts of interest.

The Court has now commissioned a review which will be carried out by its non-executive directors to ensure adherence to the Code of Conduct at the most senior levels of the Bank. The Bank's governance is already in much better shape than it was a few years ago.