BEING dragged into the Libor fixing scandal has done no favours for Paul Tucker’s ambitions of becoming the next governor of the Bank of England.
Current Bank chief Mervyn King is due to step down in the summer of 2013, and Tucker has long been expected to have his hat in the ring to replace him.
With a career history of banking supervision, Tucker is seen as the Old Lady’s eyes and ears in the City. With his proximity to core financial sector issues, crises such as the Libor fixing scandal pose a threat to Tucker’s reputation – especially if he’s dragged through the mud.
The Bank’s remit is set to expand beyond anything that could have been imagined prior to the credit crunch and global economic crisis. When the new regulatory Financial Policy Committee (FPC) began its foetal development in February last year, Tucker was among the first names on the team sheet. As deputy governor responsible for financial stability, he also has respected roles on the Basel Committee and the G20’s Financial Stability Board.
Such credentials rank him highly – yet this focus on banking could prove to be a double edged sword.