During World War II, much to the annoyance of his leader Clement Attlee, Aneurin Bevan insisted on holding Prime Minister Winston Churchill accountable for his actions. His reason was twofold; firstly believing that it was absurd to fight an authoritarian regime to simply abandon it at home and secondly, the belief that no matter how effective Churchill appeared to be, mistakes and inefficiencies were possible. I think Bevan was right
So the recent reports of Bank of England Governor Mark Carney holding confidential dinners with investment bankers and finance directors should ring alarm bells. The rumours of ‘secret deals’ as reported by The Independent newspaper is unacceptable. But as a banker, Mark Carney is naturally inclined to avoid accountability. Take two of the international groups which Carney is a senior member (for now), the European Systemic Risk Board (ESRB) and the G20 Financial Stability Board. Neither of these bodies have any form of democratic accountability. Incredibly, the ESRB which has responsibility for avoiding another 2008-style crash is run by the European Central Bank (ECB) along with individual National Central Banks, the very people who failed to see the disaster in the first place. The ESRB, of which Carney is a Vice-Chairman, makes politically sensitive decisions and the fact that it that merely reports to the European Parliament is dangerously misrepresented as accountability. Lack of proper control means these bankers cannot practically be fired, demoted, reprimanded or subjected to a pay cut!
Make no mistake, Carney is either being disingenuous or simply naive in claiming he is not behaving politically. The idea of an independent Bank of England is a fiction and the role of Governor in particular is highly political. But in any case the demand that banks and regulatory authorities should be independent has somehow come to imply that these bodies are unaccountable. For all the populist nonsense about him being a ‘rock star banker’ he is a public servant paid by you and me and we have a right to know what he is telling these financial special interest groups. This is especially so when his audience wield considerable influence as donors of the Conservative Party. Irrespective of the issue of Brexit the stench of oligarchy is strong and inevitably provides more fuel for extreme right wing advocates . Carney tries to dodge accountability under the guise of acting in the best interests of the nation but as Bevan would clearly have understood, this must be demonstrated openly.