The Bank of England’s next governor should not be appointed without MPs’ agreement in the wake of the Barclays Libor-fixing scandal, an MP demanded today.
The Treasury Select Committee should have the right to veto candidates to replace Sir Mervyn King, Labour’s John McDonnell said, as he launched an effort to change the law.
The Bank of England is getting extensive new regulatory powers and McDonnell said the post of governor was too powerful to be left to government ministers’ discretion.
The Treasury Select Committee, which is chaired by Tory MP Andrew Tyrie, last year recommended it should be able to veto any candidate for the role in Threadneedle Street.
Favourite to succeed King is still Deputy Governor Paul Tucker, pictured, who testifies to Tyrie’s committee on Monday.
McDonnell, whose Bank of England (Appointment of Governor) Bill has cross-party support, told MPs: “Barclays’ role in the Libor scandal has given a new context to this Bill. There is a new significance in the appointment of the next governor… This critical appointment cannot be left in the hands of a single minister.”
