July 26, 2012
When the Lieborgate scandal broke out and the Bank of England trace became publicly known, some of the more conspiratorially inclined elements saw in this epic shakedown at the English central bank nothing but an opportunity for the world’s dominant investment bank, Goldman Sachs, to capitalize on the scandal and the succession panic now that Paul Tucker is obviously out of succession rotation, and to appoint its own tentacles to the head of this most important central bank that is currently squid free. In fact, on July 3 we said:”now that the natural succession path at the BOE has been terminally derailed, it brings up those two other gentlemen already brought up previously as potential future heads of the BOE, both of whom just happened to work, or still do, at… Goldman Sachs: Canada’s Mark Carney or Goldman’s Jim O’Neil. Granted both have denied press speculation they will replace Mervyn King, but it’s not like it would be the first time a banker lied to anyone now, would it (and makes one wonder if this whole affair was not merely orchestrated by the Squid from the get go… but no, that would be a ‘conspiracy theory’.)” We wonder if this speculation can be upgraded from conspiracy theory to conspiracy fact, now that Bloomberg itself has written a major article discussing just this suddenly very likely outcome.
Carney Leading Bank of England Seen as Scandal Remedy
London is losing so much trust as the global financial center that Prime Minister David Cameron may need to consider an unprecedented choice for Bank of England governor: Mark Carney, the Canadian who polices the world’s financial system and has no ties to the bailouts or rigged markets tainting Labour and Conservative governments alike.
The 47-year-old Carney, who received his masters and PhD degrees from Oxford University, is no stranger to the City of London after working there with Goldman Sachs Group Inc. Now serving as governor of the Bank of Canada and the head of the Financial Stability Board, he is unscathed by the fallout from the 2008 financial crisis.
“Mark Carney is one of the brightest, most capable people I’ve ever met in global finance and central banking,” said Tim Adams, a former U.S. Treasury undersecretary who worked with Carney at Group of Seven meetings. “I’ve been around these circles a long time and he’s smart, politically savvy, a good manager and has an outstanding track record. It’s tough to find all those elements in a single person.”
Domestic candidates for the job include Gus O’Donnell, former head of the U.K. civil service, Financial Services Authority Chairman Adair Turner and Bank of England Deputy Governor Paul Tucker, a three-decade veteran at the bank.
There is one problem regarding the domestic candidates: none of them have Goldman on their resume, something which sets not only Mark Carney, but also Bill Dudley and Mario Draghi apart.
As for the punchline:
“Why not get a head that’s global? Bankers aren’t very popular, and a Canadian sounds like a good choice,” said Kent Matthews, a professor at Cardiff University and former Bank of England researcher. “It may well be that to restore credibility they have to look outside.”
So that’s the strategy: play Carney off as a Canadian, instead of as Goldman. We wonder how many minutes the general public will be fooled by that particular strawman.
Finally, the Goldmanation map we put together back in April when we first suggested this likely outcome in “On The Goldman Path To Complete World Domination: Mark Carney On His Way To Head The Bank Of England?” and which we knew would see much more use in the future, is here again.
Because with money printing squids like these, who needs sovereign states?
This article was posted: Thursday, July 26, 2012 at 8:17 am