Wow! What a great guy Carney must be--not! It was the Liberal Party that preceded Carney and the Conservatives that really managed Canada's economy so that we didn't suffer as badly during the recession. The bank rules were there and the banks were regulated, sort of. The Liberals even gave Canada a balanced budget.
But I am here to say that the three banks mentioned--TD, RBC and Bank of NS--were the three banks that used Fed Reserve emergency funds in 2009 worth from $5.5 billion to $10 billion (see: http://tinyurl.com/3dl6zvr ). What does that mean? To me it means that Canada's banks needed bailout money from both the Conservative government and the US Fed, although you never hear any mention of these figures in the press. How is that such a good thing?
I think Carney should recognize that Canada had a good system before he was Governor (2007) and he doesn't have reason to think he did anything outstanding. As a matter of fact, the Harper government has given Canada the largest public debt ever at $564.5 billion. The Harper government also introduced sub-prime and long-term mortgages into Canada's housing market until he saw what was happening in the US.
I'm sure Carney made millions while at GS and he makes about $400,000 as governor. It's not the money; it's the perceived power. We don't need any more of these power guys.
Carney Said to Be Lead Candidate for FSB Role as Decision Looms
By Mark Deen - Bloomberg Businessweek
Oct. 16 (Bloomberg) -- Bank of Canada Governor Mark Carney, a former Goldman Sachs Group Inc. manager who has clashed with banks on the need for tougher regulations, is the leading candidate to run the body charged with rewriting the rules of global finance, two officials from Group of 20 nations said.
If chosen, Carney would take the helm of the Financial Stability Board from Bank of Italy Governor Mario Draghi, who next month becomes president of the European Central Bank. Swiss central bank President Philipp Hildebrand is also being considered for the job. The officials spoke on condition of anonymity because a decision hasn’t been made yet.
Carney is “a highly qualified candidate,” Canadian Finance Minister Jim Flaherty told reporters yesterday following a meeting in Paris, where G-20 officials agreed to strengthen the regulator’s capacity and resources. He said the FSB appointment will be announced at a summit of leaders from the G- 20 in Cannes, France, on Nov. 3-4.
Carney, 46, worked at Goldman Sachs for more than a decade before becoming a policy maker in 2003 and then chief of Canada’s central bank in 2008. He has pushed for tougher regulations for global lenders and clashed with banking executives over new rules requiring them to hold more capital.
In a Sept. 25 speech to a banking group in Washington, he said new financial-market regulations wouldn’t hobble the global economic recovery, citing the recent UBS AG trading loss of $2.3 billion as an example of why greater controls are needed.
“The implementation timetable” for the new rules “begins in two years and ends in 2019,” Carney said in the speech to the Institute of International Finance.
“It is difficult to believe that prolonging this implementation phase even further would have a material impact on real economic outcomes,” he said.
The FSB brings together regulators and finance ministry officials from the G-20, as well as standard-setting bodies such as the Basel Committee on Banking Supervision. Switzerland is not a G-20 member. The FSB’s next chairman would oversee the implementation of planned capital surcharges of as much as 2.5 percent for the world’s biggest banks.
Bank watchdogs have clashed with some lenders over the additional capital rules. Jamie Dimon, chief executive officer of JPMorgan Chase & Co., and Bank of America Corp. CEO Brian T. Moynihan are among bankers who have said that the proposals would constrain lending and hurt the economy. Dimon, who has said they are “anti-American,” criticized Carney at a closed- door meeting in the presence of more than two dozen bankers and finance officials, the Financial Times reported on Sept. 26.
G-20 officials yesterday discussed formalizing the powers of the FSB to ensure new rules agreed by leaders are implemented. The FSB has said that work on the surcharge rules should be finished in time for them to be approved at the Cannes summit.
Carney helps to oversee a Canadian financial system that largely escaped the last financial crisis and has been ranked the world’s soundest for four years by the Geneva-based World Economic Forum. The country’s three largest banks -- Royal Bank of Canada, Toronto-Dominion Bank and Bank of Nova Scotia -- are among the world’s 20 largest by market capitalization.
--With assistance from Theo Argitis in Paris. Editors: Matthew Brockett, Craig Stirling
Read the article here