ALSO READBank of England's Carney says to extend stay at BoE by one year BoE's Hogg resigns over failure to flag conflict of interest End of central bankers' '15 minutes of fame' draws near - BoE's Carney Bank of England's Carney likely to leave in 2018, media say We underestimated consumer strength after Brexit, BoE's Carney says
LONDON (Reuters) - Bank of England Governor Mark Carney sought to show he understood the severity of a conflict of interest case that cost one of his deputies her job last week, but he also said the case should not inadvertently lead to tighter rules for bankers.
In an embarrassment for Carney, Hogg stood down as deputy governor for markets and banking and as the BoE's chief operating officer after failing to disclose that her brother worked for Barclays, a bank overseen by the BoE.
"For those who have questioned whether we 'get it', we do. We know this honest mistake was also a serious mistake - one that was compounded by the fact that Charlotte Hogg had overseen the development of our new code (of conduct)," Carney said.
The BoE had given Hogg a formal warning "in the strongest and most public of terms" and she waived her salary increase for this year, Carney said. Hogg eventually decided to leave her job after lawmakers said she was not fit for the role.
But the BoE did not want the episode to lead to tougher de facto rules for the banking industry, Carney said, stressing that "an honest mistake that is freely admitted" should not be an automatic firing offence.
"We must not let recent events inadvertently tighten perceived standards for the industry because that could have senior managers running scared, drive compliance underground and undermine our collective objectives," he said.
Carney has led a global push to reduce risk and improve standards in the banking industry in response to the global financial crisis of 2007-09.
(Reporting by Andy Bruce and William Schomberg, editing by David Milliken)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)