3 The re-appointment of Martin Taylor
Background
on Mr Taylor
6. Mr Taylor was Chief Executive of Barclays between
1994 and 1998. Mr Taylor also served as an adviser to Goldman
Sachs International from 1999 to late 2005 (and chaired the firm's
non-US audit committee). He was Chairman of the WH Smith Group
PLC between 1999 and 2003, prior to which he had been a non-executive
director between 1993 and 1997. He was also Chairman of the WH
Smith pension fund until 2005. He served as a member of the Independent
Commission on Banking under Sir John Vickers. Mr Taylor has experience
as a journalist for the Financial Times. Mr Taylor was Chairman
of Syngenta until 2013. He steps down from the board of RTL Group
in Luxembourg this year. Mr Taylor has been a member of the FPC
since 2013.
Our evidence
7. In oral evidence, we questioned Mr Taylor about
the issues facing the FPC, and how he expected to respond to those
issues. The topics we questioned Mr Taylor about included:
· Consensus and the FPC's approach to decision-making;
· Consensus and communications by FPC members;
· Consensus and accountability;
· The FPC's code of conduct;
· The design of the leverage ratio;
· The relationship between the risk-weighted
capital regime and the leverage ratio;
· The possibility and implications of Greece
leaving the euro;
· Potential responses to the consequences
of the Greek election;
· Structural problems and fiscal sovereignty
in the Eurozone;
· Politics and central bank communications;
· Germany's role in the Eurozone crisis;
· The implicit subsidy to large banks;
· The purpose, interpretation and design
of the Financial Stability indicators;
· Public understanding of the FPC;
· The use of the powers of direction;
· Lord Grabiner's inquiry and market intelligence;
· The time horizon for considering risks
to financial stability;
· Derivatives and financial stability; and
· The number of external members on the
FPC.
Conclusions
8. We are satisfied that Mr Taylor has the professional
competence and personal independence to be an external member
of the Financial Policy Committee. We wish him every success in
his continuing role.
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