It is a real pleasure to be giving my first speech as Deputy Governor of the Bank of England at the London School of Economics (LSE). It resonates on so many fronts. The LSE has produced many members of the Monetary Policy Committee, Deputy Governors and indeed Governors of the Bank of England as well as vast numbers of its staff over the years. I was taught macroeconomics at the LSE by Charlie Bean, one of my predecessors at the Bank as well as by my host this evening, Nick Stern, when I did the MSc in economics. And the topic of my speech tonight resonates with the origins of the LSE as an institution that always sought to bring the best of academic thinking to the pressing problems of the day.
As you will no doubt realise by the frequency of misconduct stories in the papers, Fixed Income, Currency and Commodity (or FICC) markets are certainly dealing with pressing problems. The Fair and Effective Markets Review – which I am leading along with my co-chairs, Martin Wheatley from the Financial Conduct Authority and Charles Roxburgh from the Treasury – was set up to restore confidence in the operation of these markets.
Speech given at the London School of Economics.