U.K. Chancellor Sajid Javid dismissed calls by the opposition Labour Party to delay the appointment of Andrew Bailey as the next governor of the Bank of England, Bloomberg News reported.
Bailey's tenure as head of the Financial Conduct Authority was rocked by a string of financial scandals, including the alleged mistreatment of small businesses by Royal Bank of Scotland Group PLC's now-defunct Global Restructuring Group as well as the collapse of London Capital & Finance PLC and the Woodford Equity Fund.
The Labour Party is pushing to postpone his appointment to the central bank until a review of regulation failures during his term at the FCA is completed. John McDonnell, Labour's economy spokesman, told the lower house of parliament Jan. 7 that the debacles over RBS' restructuring unit, London Capital Finance and the Woodford fund were proof of Bailey being "asleep at the wheel," Bloomberg noted.
Javid defended Bailey, saying he is "eminently qualified" to take over the BoE, adding that an inquiry into Bailey's record at the FCA is already underway, the report added.
Bailey has been head of the FCA since July 2016. He has more than 30 years of experience across areas of monetary policy at the BoE, including as executive director for banking services and chief cashier, as well as head of its special resolution unit. His appointment as central bank governor is effective March 16.