The former economic advisor to Prime Minister Boris Johnson has failed to make the final shortlist to become the Bank of England’s next governor.
Gerard Lyons had been the favourite to take over from Mark Carney due to his personal relationship with Johnson, but the Treasury have deemed him unsuitable for the role, according to The Times.
Lyons was formerly the chief economist at Standard Chartered and advised Johnson during his stint as London mayor.
It is believed that he fell short of the appointability criteria set, having been interviewed for the post by the Treasury panel, which submits a final shortlist to the chancellor.
Lyons did not make the list from which the chancellor will make a final recommendation to the Prime Minister due to falling short of the requirement that he must have “successfully led a large financial organisation”, a source close to the Treasury told The Times.
The 58-year-old, a Brexit supporter, headed up a division of around 180 staff with a budget of $80m during his time at Standard Chartered.
The Bank of England in contrast, has a budget of £650m and employs more than 4,000 people.
While who made the final shortlist is not yet known, the frontrunners are thought to be chief executive of the Financial Conduct Authority, Andrew Bailey, chairwoman of Santander UK, Baroness Vadera, and new favourite Sir John Kingman, who is the chairman at Legal & General.
Kingman, 50, was second permanent secretary at the Treasury until his departure in 2016 and was involved in the bank bailouts during the financial crisis.
Lyons absence from the shortlist does not mean he cannot be appointed by the Prime Minister, but it would be against the standard procedure for the Treasury’s advice to be disregarded.
The possibility of a general election has also confused the appointment process, while Carney, 54, has not ruled out staying in post beyond 31 January if required.
The Treasury declined to comment.