Senior UK central banker quits over disclosure failings

AP News
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Posted: Mar 14, 2017 6:48 AM
Senior UK central banker quits over disclosure failings

LONDON (AP) — The Bank of England's newly appointed deputy governor, Charlotte Hogg, has resigned amid criticism that she broke internal rules by failing to declare that her brother held a senior position at London-based Barclays.

The central bank released Hogg's letter of resignation Tuesday as a parliamentary committee published a report challenging her "professional competence" in light of her failure to meet the bank's internal requirements. The problem was compounded by the fact that her role would have required monitoring transparency.

The central bank monitors conduct of those in banking, and some in the industry claimed that they too would demand leniency in reporting if she had been forgiven without penalty. In her resignation letter, Hogg said she made a mistake, and had not won any financial gain as result of the error.

"However, I recognize that being sorry is not enough," she wrote. "We, as public servants, should not merely meet but exceed the standards we expect of others. Failure to do so risks undermining the public's trust in us, something we cannot let happen. Furthermore, my integrity has, I believe, never been questioned throughout my career. I cannot allow that to change now."

The central bank said Tuesday that Hogg's resignation was voluntary. Bank of England Governor Mark Carney says he respects her decision, but deeply regrets she chose to resign.

"The Bank of England today is stronger, more diverse, secure and effective in large part because of Charlotte Hogg," he wrote. "We will do everything we can to honor her work for the people of the United Kingdom by building on her contributions."

The bank also outlined a number of steps it would undertake because of the Treasury committee report, including an effort to more effectively safeguard the governance of the code of conduct.