Paul Myners, a Labour Party lawmaker in Parliament’s upper House of Lords, said he hopes Paul Tucker will be appointed the next Bank of England governor, countering pressure on his bid for the job from the Libor-rigging furor.
Tucker, a front runner to replace central bank Governor Mervyn King when he retires in June, has been drawn into the scandal over his 2008 call with former Barclays Plc (BARC) Chief Executive Officer Bob Diamond. Diamond will face questions on his communications with the central bank when he testifies in front of lawmakers today.
“Paul Tucker is an outstanding candidate,” Myners said in an interview on Bloomberg Television today. “The evidence will show that the Diamond record of the conversation is partial, not complete, and I’m hoping that Paul Tucker will be the next governor of the Bank of England.”
Myners was minister for the City, London’s financial district, under the last administration, and said today the questions over Libor have ended the bids of several potential candidates.
“We’ve seen a couple of candidates fall away off the list this week,” Myners said. “John Varley, former chief executive of Barlcays, had been talked about as a possible governor. Well, I think he’s off the list.”
Tucker leads the race at bookmaker Paddy Power Plc (PAP), with odds of 4/5. That means a 1-pound ($1.57) winning bet would yield an 80 pence return plus the original stake. Former HSBC Holdings Plc (HSBA) Chairman Stephen Green’s odds are at 7/1 and Varley stands at 16/1.
Myners also called on the Conservative Chancellor of the Exchequer George Osborne to clarify the process for choosing the next governor. Government officials have signalled the formal process won’t start until the fall.
“We also need to make sure the process of appointing the next governor is very open and transparent, and not done secretively, as the chancellor endeavors to do at the moment,” he said.
To contact the editor responsible for this story: Craig Stirling at firstname.lastname@example.org