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The Bank of England’s new deputy governor has resigned from her post after a report from MPs found she “falls short of the very high standards required” to hold the role, having misled parliamentarians about her brother’s position at Barclays.
In a damning report published today, the Treasury Select Committee issued a strongly worded criticism of Charlotte Hogg, the BoE’s new deputy governor of markets and banking.
“The Committee considers that her professional competence falls short of the very high standards required to fulfil the additional responsibilities of Deputy Governor for Markets and Banking”, said the TSC.
The news prompted her immediate resignation, with Governor Mark Carney saying he “deeply regretted” the decision.
While I fully respect her decision taken in accordance with her view of what was the best for this institution, I deeply regret that Charlotte Hogg has chosen to resign from the Bank of England.”
Since Charlotte joined the Bank almost four years ago, she has transformed its management and operations.
The Bank of England today is stronger, more diverse, secure and effective in large part because of Charlotte Hogg. We will do everything we can to honour her work for the people of the United Kingdom by building on her contributions.
The TSC said Ms Hogg’s failure to inform the Bank that her sibling worked at a bank she would be in charge of regulating “raises wider concerns about BoE transparency” and called for further reform of the BoE’s internal court.
Ms Hogg had been COO of the Bank since 2013 and admitted to having failed to tell the BoE’s court that her brother was employed at a strategic planning unit at Barclays four years ago.
In her resignation letter, Ms Hogg said it was “an honest mistake” but acknowledged that her position meant she should “exceed the standards we expect of others”.
Andrew Tyrie, head of the TSC said there were “no winners” from the episode, adding that Ms Hogg has always acted “inthe best interest of the institution for which she has been working”.
In response to the TSC’s findings, the BoE said it would be “reconfiguring” its internal structures.
Anthony Habgood, Chair of the BoE’s Court said:
In her time at the Bank, Charlotte Hogg has made a huge contribution in areas such as professionalising and modernising the management and operations of the Bank, leading the implementation of the strategic plan, championing diversity and driving forward the Bank’s understanding of key issues such as Fintech and Operational Risk.
No one who knows her doubts her track record or her integrity. While Charlotte’s decision by any measure exceeds the standard that would be expected in the private sector or would be required under statute, it is understandable in the circumstances and she has taken it with the best interests of the Bank at heart.