BOE Board Says Hogg's Departure `Disproportionate' to Offense

  • Central bank’s Court says her exit was a ‘material loss’
  • Deputy governor left after conflict of interest controversy

Charlotte Hogg’s resignation as deputy governor of the Bank of England just weeks into the job was “entirely disproportionate” to the offense she was accused of, according to the central bank’s board of directors.

Hogg, who started on March 1 and whose role included responsibilities for financial supervision, was criticized for failing to disclose that her brother works for a bank she would help to regulate. She quit after Parliament’s Treasury Committee said on March 14 her “professional competence falls short of the very high standards required.”

Her departure “came at a critical time and represented a material loss to the management of the bank,” the BOE’s Court of Directors said, according to the minutes of a teleconference held the day lawmakers released their judgment. “The outcome seemed to Court members entirely disproportionate.”

The Court also said that if the same offense had happened in a company under the U.K.’s senior managers’ regime, it would not have prompted regulators to press for dismissal. It added that Hogg’s treatment may set an “unwelcome precedent” for such firms.

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