(Bloomberg) --
U.K. Chancellor Sajid Javid rejected criticism of his choice of Andrew Bailey as the next governor of the Bank of England after the opposition Labour Party called for the appointment to be postponed until after a review of regulation failures while he was head of the Financial Conduct Authority.
John McDonnell, Labour's economy spokesman, told the House of Commons Tuesday that scandals surrounding London Capital Finance, the Woodford Equity Fund and the Royal Bank of Scotland's Global Restructuring Group were examples of Bailey being “asleep at the wheel” during his time at the FCA.
“Mr. Bailey was the outstanding candidate,” Javid said in reply. “Any reasonable person who looks at Mr. Bailey's track record of outstanding public service will see that he's eminently qualified.”
Javid didn't respond when McDonnell asked if victims of the scandals -- many of whom he said were on low incomes -- had been consulted before the chancellor announced Bailey's appointment last month.
“Labour wants a sort sharp inquiry,” McDonnell said. “It would be appropriate to postpone Mr. Bailey's installation in office until an independent inquiry into those failures of financial regulation has taken place.”
Javid said an inquiry is already under way and “we will make sure all the necessary lessons are learned.”
To contact the reporter on this story: Thomas Penny in London at tpenny@bloomberg.net
To contact the editors responsible for this story: Tim Ross at tross54@bloomberg.net, Andrew Atkinson
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