It’s not the first time he has thrown in the towel, as some readers will remember: he did it once before in 2010 but George Osborne persuaded him to stay. But this time it seems there is to be no going back.
It’s all rather embarrassing for the government - Sants was overseeing the effective dissolution of the FSA and the merger of its functions back into the Bank of England from whence it originally came in New Labour’s heyday. Now he has decided to ship out before the job is done, leaving it all looking a bit of mess.
So why has he decided to bail out early? The consensus seems to be that he simply got fed up off the amount of time the whole thing was taking, especially the new legislation required. This is not now expected to be in place until well into next year. It can’t have been an easy decision - if things had panned out as expected he would have ended up as one of three deputy governors of the Bank of England, not a job to be sniffed at.
What’s going to happen now? He won’t be directly replaced as chief exec, rather his role will taken over by FSA chairman Lord Turner whose position will become an executive one (and who may be thinking that his original three day a week gig is starting to look rather more demanding).
Sants’ deputy, Andrew Bailey, is now expected to be named as one of the troika of new BoE deputy governors instead in due course. So not a bad result for him at least.
- Image credit: Flickr/Bank of England