M P C Member In Shock Resignation

[IPOD]

http://news.ft.com/cms/s/f23c34f2-3eee-11d...000e2511c8.html

Sir Andrew Large, deputy governor of the Bank of England, has decided to stand down from his role almost two years early, leaving a vacancy on the interest-rate-setting monetary policy committee.

As one of the members of the MPC more inclined to support higher interest rates....

Did he jump or was he pushed?

[MarkG]

Did he jump or was he pushed?

He can probably see which way the hurricane is blowing, and wants to get out before Brown dumps the blame for an economic crash on rising interest rates.

[right_freds_dead]

id say hes been smart enough to jump.

maybe there will be some 'kiss and tell' news from him soon as the economy drops further. a good time for him to play the told you so card.

Edited October 17, 2005 by right_freds_dead

[Realistbear]

http://news.ft.com/cms/s/f23c34f2-3eee-11d...000e2511c8.html

Did he jump or was he pushed?

Probably pushed. The BBC article on Gordon's failure to read the economic warning signs is having a big impact. Heads are going to have to roll as Gordon tries to find scapegoats. The only sanity left is Mervyn King and his helpers.

[apom]

Can I be honest...?

I feel that whatever happens now the government is looking to cover itself.

Gordon is getting accused now almost daily of forcing a false economy through debt and high house prices..

to this end whatever happens to house prices will be played out in the political arena..

I think also that this will only delay the innevitable.

Perhaps this guy wanted to leave before innevitable hard choices to raise interest rates were made.

Whatever happens over the next few months it is going to be messier then I had ever dreamt of..

The government are getting caned now about the situation.. suggestions that they have engineared huge debt amongst the population are widespread.

and not since the 70's has such poor management been illustrated.

Edited October 17, 2005 by apom

[Guest Bart of Darkness]

id say hes been smart enough to jump.

I would in his position.

[Guest]

Anyone know when the US announce their rate decision next?

We're at the crunch time now, right?

[apom]

and..

How interesting are his comments to the press over the next few days going to be..

Unrestrained by his position he can now say whats on his mind..

Now id he had been supporting high interest rates he might be more useful now he is free..

Or he may just choose to keep his mouth shut..

Personally I hope he doesent.

again.. its all getting very interesting.

[jpidding]

From Bloomberg...

"Large called for higher borrowing costs more times than any

other member of the Monetary Policy Committee during the 36

meetings he attended for which minutes have been released. He

voted to raise the benchmark rate 12 times and favored lower

rates only once. He was also one of three dissenters who sided

with Governor Mervyn King in opposing the decision to cut the

rate a quarter point to 4.5 percent in August."

[MarkG]

Wonder if Brown's cronies are going to start voting for interest rate _increases_? Could be a handy way to pass the buck on his part... 'the crash wasn't my fault mate, it was the independent Bank of England wot done it'.

[OnlyMe]

http://news.ft.com/cms/s/f23c34f2-3eee-11d...000e2511c8.html

Did he jump or was he pushed?

May explain why Merv doesn't seem to be a happy bunny, first the patsies railiroad a rate cut in the face of rising inflation and now the man responsible for financial stability gives up his tenure well before time.

One more patsy and Merv will be totally outnumbered.

[Ritters]

Apart from being on the MPC, as deputy governor for financial stability, Sir Andrew, worked to improve the surveillance of markets, aiming to ensure that the Bank was well placed to deal with any crisis that could engulf the whole financial system.

Anyone else smell a rat?

Edited October 17, 2005 by Ritters

[Guest Charlie The Tramp]

Did he jump or was he pushed?

The announcement of his departure, now confirmed to take place after the January MPC meeting, took almost everyone by surprise. His letter of resignation, however, indicated that he told Gordon Brown when he was appointed in 2002 that he might not wish to serve his full term until 2007.

[mbga9pgf]

and..

How interesting are his comments to the press over the next few days going to be..

Unrestrained by his position he can now say whats on his mind..

Now id he had been supporting high interest rates he might be more useful now he is free..

Or he may just choose to keep his mouth shut..

Personally I hope he doesent.

again.. its all getting very interesting.

was he a bull or a bear?

And more to the point, will it be a bull or a bear that replaces him? Who gets to decide, and does the government (even through back channels) get a say?

[Guest]

Wonder if Brown's cronies are going to start voting for interest rate _increases_? Could be a handy way to pass the buck on his part... 'the crash wasn't my fault mate, it was the independent Bank of England wot done it'.

This was the impression I got from the Radio 4 interview posted on this site last week. GB was talking about his move to make the bank independent, and cited an example where the BOE was crying out for rate rises, but the then chancellor wouldn't do it. (With the implication, I presume, that an independent bank solves these sorts of problems).

Interesting choice of example, huh???

[Mushroom]

Still look on the bright side.

At least he's not off to a Gulag.

The Party line will be upheld.

Independent my.....

Perhaps now Nero Brown?

[IP Newcomer]

I think we have to be honest here. This is great news for the bulls. The Bank of England will delay the inevitable, obviously making the whole thing worse.

[FTBagain]

Does it matter who gets the job?

If a bull (patsie) gets the job then the rate will be cut and inflation will run free and fast. The windgers in the CBI will start to scream that their profits are getting destroyed by inflation and the rates will go up!!

If a bear gets the job the status quo will be maintained and we might see rates go up in the new year.

Either way rates go up!! The only difference is the depth of the coming recession. Of course, if they get it really wrong recession becomes depression, so may be it does matter.

Hmm! This deck is at a funny angle. I'll have another G 'n' T please!

[right_freds_dead]

"His letter of resignation, however, indicated that he told Gordon Brown when he was appointed in 2002 that he might not wish to serve his full term until 2007.

Sir Andrew wrote in his letter to the chancellor: “I have now decided that I would like to retire from the Bank at the end of 2005 after almost 31/2 years, to return to the private sector”.

the whole false boom started in 2001. he had probably been outgunned by then and knew it. since then hes bleated against the cuts. this was his way of telling gb he wasnt happy and was outgunned.

also, if all was well and the choices were going his way do you think he would leave such a top slot for the private sector at his age ? no. at that age they love the prestige not the payouts.

[apom]

Its an interesting area..

a lot of the direction that the country is going to be taking sits with the MPC.

none of it looks very rosy.

but do we:

Take high interest rates now and attempt to fix the economy.

keep low interest rates or lower them and delay the fix until high rates are forced?

[Guest Charlie The Tramp]

emmm... which of the headlines actually says "Shock"??

took almost everyone by surprise.

Surprise, a form of mild shock.

[Losing Faith]

And more to the point, will it be a bull or a bear that replaces him? Who gets to decide

You decide! der d d der d d der d d der d d...

Or maybe a celeb member.

[MarkG]

You decide! der d d der d d der d d der d d..

Yeah, we should turn it into a 'reality TV' show. People could vote for who gets to stay on the committee each month, and who replaces them when they leave.

[laughing_goat]

Andrew Large was the one who would vote for a rate rise when no one else would. The loss of him is not great news for us Bears, but I too don't blame him for jumping. I hope he gets replaced by a like minded person, but I doubt he will.

[munimula]

http://news.ft.com/cms/s/f23c34f2-3eee-11d...000e2511c8.html

Did he jump or was he pushed?

He probably got bored, one IR change in the last 12 months or so and in the wrong direction and he probably has a good idea that they won't be moving again for a while as the tug of rope games continue at the BoE.