The UK Treasury is considering Sarah Breeden, a senior official at the Bank of England, for a promotion to the position of deputy governor when Jon Cunliffe retires from the job in October.
(Bloomberg) — The UK Treasury is considering Sarah Breeden, a senior official at the Bank of England, for a promotion to the position of deputy governor when Jon Cunliffe retires from the job in October.
Two other leading contenders for the job have ruled themselves out, saying they favor a woman for the role overseeing the central bank’s analysis of financial stability and sitting on the interest-rate setting committee.
Breeden is currently the BOE’s executive director for financial stability and risk. Naming her would diversify the top six positions at the BOE, which are currently all filled by men.
Potential candidates had included Alex Brazier, Breeden’s predecessor who is now deputy head of the Blackrock Investment Institute, and Huw van Steenis, a former UBS AG and Morgan Stanley banker who advised Mark Carney when he was BOE Governor. Van Steenis is now vice chair of Oliver Wyman.
Both are happy in their current jobs and support the appointment of a woman to the BOE role, according to people familiar with the situation who asked not to be named. The BOE’s top executives include Governor Andrew Bailey, four deputy governors and a chief operating officer, all of whom are men.
The Treasury, which runs the recruitment process, declined to comment. The BOE also declined to comment, as did the individuals.Â
The main external rival to Breeden is Katharine Braddick, former director general for financial services at the Treasury. Before that, she worked as a director of prudential policy at the BOE. Last year, she joined Barclays Plc as group head of strategy and adviser to the chief executive officer.
The deputy governor for financial stability role has gained prominence after recent financial shocks, including the pension-market meltdown last September linked to Liability Driven Investment strategies and the collapse of Silicon Valley Bank and Credit Suisse.
The Treasury believes it is vital that Cunliffe’s successor is someone with expertise in banking and financial markets. Cunliffe, 70, has proved highly effective but he came to the post in 2013 from the Treasury with little direct experience of banking and finance.
However, the government is also concerned about the risk of group-think at the BOE and is keen to find a strong external female candidate as an alternative to Breeden, according to people familiar with the situation. It’s not clear whether Braddick is interested in the role.
Breeden, who was appointed to her current job in August 2021, is Cunliffe’s natural successor. However, she is expected to face stiff opposition internally from Andrew Hauser, the executive director for markets who led the BOE’s response to the LDI meltdown.
If Hauser loses to Breeden, he could move into Breeden’s post, which would give him a role on the Financial Policy Committee.Â
A decision is expected at the end of July or early August in keeping with the principle that senior BOE appointments are announced three months before the incumbent leaves.Â
Breeden currently earns £205,000 ($260,690) in pay and benefits. As a deputy governor, she would take home about £375,000.
Read more:
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- Bank of England biographical details on Breeden
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