Mark Carney: evaluation

Transcript context

…Of course, yes. Okay. They should — and we started to take steps in this way, something called step-in risks. The assumption is that the off-balance-sheet risk, there will be either a moral or some other quasi-legal responsibility for the connected institution to assume those risks. You should always assume that those risks collapse back on the central balance sheet. Just as, if you recall, the SIVs in 2008 collapsed back on the balance sheets of major institutions like Citibank, for example, and Merrill Lynch, and all of a sudden balance sheets that looked relatively healthy looked awful because they’re substantially higher-risk assets. Of course, the assets that were off balance sheet were off balance sheet because they weren’t that high quality. Now, this — yourself through Stanley Fischer — as you know, there’s a trend of recruiting central bankers from other countries. So far, it seems it’s worked quite well. But what are the limits of this process of recruiting leaders in government from abroad? You wouldn’t name someone to run the Department of Defense who is from another country, right?…

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