Fanbase: Mark Carney with his wife Diana
On Mark Carney’s last day at the Bank of England in March 2020, the Governor raided the Old Lady’s legendary wine cellar and entertained his sparring partners in the economic press to a sumptuous luncheon.
On several occasions Carney was summoned from the room by aides to take vital phone calls.
The Covid-19 virus was spreading uncontrollably across the globe. Unbeknown to his guests, Carney, and his successor as Governor Andrew Bailey, were in urgent consultations with the Federal Reserve in the US and other leading central banks about the steps to be taken as Western capitalism locked itself down.
In keeping with the rectitude demanded of central bankers, Carney provided no hints of the crisis unfolding on Wall Street, where the market for US Treasuries, the blood supply to the global financial system, was in arrest.
His calmness, poker face, and deliberate decision-making were in line with his experience of leading the Bank of Canada in the 2008-9 financial crisis and navigating the UK through the shock of the 2016 Brexit referendum during his time on Threadneedle Street.
Five years on, the former Bank of England governor, known for his suave appearance, has abandoned political independence and embraced controversy.
Last week, he surprised many by appearing at the Labour Party’s conference in Liverpool via video message from Canada. He praised Shadow Chancellor Rachel Reeves as a “serious economist” and commended her understanding of economics and ability to put ideas into action.
Carney’s alignment with progressive politics is not accidental. He recently attended a center-left gathering in Montreal with Keir Starmer, where he launched a scathing attack on populist right-wing politics and criticized UK Conservative politician Liz Truss for a “basic misunderstanding of economics.”
Enorsement: Carney described Shadow Chancellor Rachel Reeves, pictured with Keir Starmer, as ‘a serious economist’
Carney’s recent involvement in left-wing politics has fueled speculation that he is preparing for a career in Canadian politics under the Liberal banner. Sources claim he has identified a parliamentary seat and may even serve as finance minister if he fails to displace Justin Trudeau as prime minister.
Carney’s political interventions are unprecedented for a former Bank of England Governor, who traditionally maintains a distance from party politics. However, he seems to have abandoned the neutrality associated with his former role.
As he becomes more deeply embroiled in Leftist politics, his role at Brookfield is likely to become a target
Since leaving the Bank of England, Carney has taken on various roles related to climate change and finance. He currently serves as the United Nations special envoy for climate action and as a finance advisor to COP26 in Glasgow. His appointment as finance advisor by Boris Johnson was surprising given their ideological differences over Brexit.
Carney’s political endeavors raise questions about his position as chairman of Brookfield Asset Management, a Canadian private equity firm. The company’s claims of being carbon neutral have drawn skepticism from the environmental community. Furthermore, Labour and the Democrats in the US have focused on the tax advantages enjoyed by private equity firms like Brookfield.
While Carney’s endorsement by Rachel Reeves and Labour may seem appealing, his involvement in private equity, which has a poor record on transparency and workers’ rights, could undermine his progressive image.
Nevertheless, Carney has proven his ability to capitalize on his actions and turn potential setbacks into advantages.
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