Changes at the Bank of England

Sir Jon Cunliffe to join Bank of England as deputy governor
Sir Jon Cunliffe, a former Treasury mandarin and Britain’s current Permanent Representative to the European Union, is to join the Bank of England as deputy director for financial stability.

Jon Cunliffe, the then managing director of the Treasury, and Gordon Brown,. the then Chancellor, at a G7 summit in New York in May 2004. Photo: Reuters
By Philip Aldrick, Economics Editor
3:24PM BST 26 Jul 2013
52 Comments
He replaces Paul Tucker, who announced his resignation earlier this year after being overlooked for the top job, and will start on November 1. Mr Tucker is moving to the US to join Harvard Kennedy School and Harvard Business School as a senior fellow.

Sir Jon’s appointment means three of the five top jobs at the Bank are now occupied by outsiders, after Mark Carney was recruited from Canada to replace Lord King as Governor and Charlotte Hogg was hired from Santander as chief operating officer.

A further shake up is due in June next year, when Charlie Bean steps down as deputy governor for monetary policy.

The selection came as a surprise. Andy Haldane, executive director for financial stability at the Bank, was considered the front runner. Paul Fisher, executive director for markets, was also a leading candidate. Like Mr Tucker, they may decide to leave the Bank now.

Sir Jon’s appointment will also renew concerns about political interference in banking regulation, which he will oversee in his new role. By parachuting one of its own into such a senior position, the Treasury will invite speculation that it is stamping its authority on the Bank’s handling of financial regulation.

Related Articles
Profile: Sir Jon Cunliffe
26 Jul 2013
Governor Carney urged by former Chancellor to ditch QE
30 Jun 2013
Mark Carney has a tough task ahead as Bank of England Governor
29 Jun 2013
Our leaders are busy polishing their CVs
28 Jun 2013
Could you be Mark Carney's sidekick?
28 Jun 2013
Paul Tucker decides on early exit from the Bank of England
14 Jun 2013
Sponsored The BlackRock view: taking small steps out of cash


The Bank’s recent requirement that lenders boost their loss-absorbing capital buffers has infuriated some in Whitehall and Westminster who fear it could harm lending and delay the recovery. Earlier this week, Business Secretary Vince Cable described elements in the Bank as behaving like the “capital taliban”.

A career civil servant, Sir Jon, 60, was second permanent secretary to the Treasury under Labour and a leading architect of the G20 response to the financial crisis as the Government’s negotiating official, or “sherpa”.

As the Treasury’s “sherpa” in 2005 he got to know Mr Carney, who was his Canadian counterpart. They developed a close working relationship that may have played a part in the Chancellor’s decision.

Sir Jon was selected because of his broad international diplomatic experience, which will be key in negotiations with Europe over the future shape of financial regulation and the ramifications of a eurozone banking union.

He has also worked closely with Mario Draghi, president of the European Central Bank, who also performed a “sherpa” role for Italy at the time Mr Carney and Sir Jon got to know one another.

Mr Carney said: “I am delighted that Sir Jon Cunliffe is to join the Bank. I have been fortunate to have worked with Jon for over a decade on a wide variety of international issues.

“He is an outstanding public servant, with vast experience of financial and economic policy. He brings an important European and international perspective that will be vital in ensuring that the Bank can shape both the UK and international financial systems so that they effectively serve the needs of the real economy.”

The Chancellor said: “With his extensive experience in economic and financial policy, and very strong record of service at the highest levels of government in this country and internationally, Sir Jon Cunliffe will be an outstanding Deputy Governor.

“Sir Jon will be instrumental in ensuring the success of the Bank’s enhanced responsibilities for financial stability. His deep experience in engaging with the European Union will be instrumental in ensuring Britain’s financial services are well represented and protected.”

The Chancellor received no more than five applications for the job. Mr Tucker leaves the bank for the US on October 18. He follows Lord King, the former Governor, who is joining New York University’s Stern School of Business as a visiting professor.

Sir Jon is far from the first Whitehall official to be appointed deputy governor. Former deputies Sir John Gieve and Rachel Lomax also joined from the civil service.