Thursday June 19, 12:12 PM
ROUNDUP BoE confirms personnel changes as Darling gives it more powers
LONDON (Thomson Financial) - The Bank (TBHS - news) of England today confirmed a raft of personnel changes to its rate-setting body just a day after Chancellor of the Exchequer Alistair Darling outlined major reform plans to the UK's financial supervisory system.
As had been widely expected, the Bank confirmed that Charlie Bean has been promoted to deputy governor in charge of monetary policy from July 1 to replace Rachel Lomax, who has opted not to seek to renew her five-year contract.
Bean's position as chief economist will be taken by Spencer Dale, a life-long Bank official. Dale will also join the Monetary Policy Committee from July 1 too.
Earlier, the central bank confirmed that Sir John Gieve will resign from his post as the other BoE deputy governor with responsibility for financial stability next year.
Gieve, who has been in his current role since January 2006, was due to serve as deputy governor on the bank's nine-member MPC (A050540.KQ - news) until early 2011.
The resignation will open another vacancy on the MPC.
Today's announcements come a day after Chancellor Darling confirmed that the Bank of England would be given a new formal legal responsibility for financial stability, with a slimmed-down Court of Directors offering oversight and a Financial Stability Committee guiding operations in this field.
The Bank confirmed that Gieve would leave the bank after the changes had been made, most likely by spring 2009.
'Sir John Gieve has decided he will leave the bank next year once changes to the bank's responsibilities have been made, including a new Special Resolution Regime for failing banks,' the Bank of England said in a statement.
'Sir John believes the bank's new responsibilities should be led by a new Deputy Governor who will serve a full term,' it added.
The changes were largely made in response to the collapse of British mortgage lender Northern Rock (LSE: GB0001452795.L - news) , which was nationalised in February.
At the time, Gieve was heavily criticised by the influential Treasury Select Committee for being asleep at the wheel at the time of the Northern Rock collapse.
Unlike the appointment of Bean and Dale, Gieve's replacement will have to apply via an open recruitment process.
Darling confirmed last night that from now onwards the posts of governor and the two deputies, along with external members of the MPC, will be publicly advertised.
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