Regional President Speech

SILAS KEEHN UNIVERSITY OF CHICAGO MANAGEMENT CONFERENCE ROBIN LEIGH-PEMBERTON INTRODUCTION APRIL 24, 1992 - PAGE 1 I. GREAT PLEASURE TO BE HERE FOR THIS SPECIAL MANAGEMENT CONFERENCE HONORING THE UNIVERSITY OF CHICAGO'S CENTENNIAL CELEBRATION. A. UNIVERSITY OF CHICAGO IS A PARTICULARLY ,·'""2..~ DISTINGUISHED ~Tl8N THAT HAS SO WELL STOOD THE TEST OF TIME FOR SO MANY YEARS. 1. IT IS TRULY AN OUTSTANDING INSTITUTION. B. IT THEREFORE SEEMS APPROPRIATE TO HAVE AS OUR SPEAKER TONIGHT THE HEAD OF ANOTHER VERY DISTINGUISHED INSTITUTION THAT HAS ALSO STOOD THE TEST OF TIME. INDEED A GREAT DEAL OF TIME -- ALMOST 300 YEARS. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SILAS KEEHN UNIVERSITY OF CHICAGO MANAGEMENT CONFERENCE ROBIN LEIGH-PEMBERTON INTRODUCTION 24, 1992 - 2 APRIL PAGE 1. A SPECIAL HONOR AND A VERY GREAT PRIVILEGE TO INTRODUCE OUR SPEAKER, ,'N RO b THE RIGHT HONORABLE ROBIN LEIGH-PEMBERTON, THE GOVERNOR OF THE BANK OF ENGLAND. C. GIVEN HIS EXTENSIVE EXPERIENCE AND HIS CURRENT RESPONSIBILITIES, I CAN'T THINK OF A BETTER CHOICE OF A SPEAKER TO PROVIDE A Yf@ftj!Fr, KNOWLEDGEABLE AND INSIGHTFUL PERSPECTIVE ON THE GLOBAL ECONOMY. II. A FEW COMMENTS ON THE BANK OF ENGLAND I APPROPRIATE AS THINK IT ILLUSTRATES THE MAGNITUDE OF THE RESPONSIBILITIES THAT THE GOVERNOR HAS IN GUIDING THE AFFAIRS OF THAT 3 I.NS 111 tl=F:EON. ~ ~ 1694 -- A. BANK WAS FOUNDED IN INITIALLY CREATED TO RAISE MONEY FOR WILLIAM OF ORANGE TO FINANCE HIS WAR WITH FRANCE. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SILAS KEEHN UNIVERSITY OF CHICAGO MANAGEMENT CONFERENCE ROBIN LEIGH-PEMBERTON INTRODUCTION APRIL 24, 1992 - PAGE 3 B. IT WAS A PRIVATE BANK FOR SOME 250 YEARS -- OVER THIS LONG PERIOD IT HAD MANY INTERESTING SHAREHOLDERS INCLUDING, I AM TOLD, PRESIDENT GEORGE WASHINGTON'S WIFE, MARTHA. III. LIKE THE FEDERAL RESERVE, THE BANK OF ENGLAND HAS EVOLVED IN RESPONSE TO THE NEEDS OF THE TIME. A. BUT UNLIKE THE FED, MANY OF THE BANK'S POWERS AND RESPONSIBILITIES HAVE NOT BEEN SPELLED OUT IN LEGISLATION. B. THIS HAS CHANGED SOMEWHAT IN THE LAST DECADE OR SO AS THE BANKING ACTS OF 1979 AND 1987 AND THE FINANCIAL SERVICES ACT OF 1986 HAVE MORE CLEARLY DEFINED THE BANK'S SUPERVISORY POWERS. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SILAS KEEHN UNIVERSITY OF CHICAGO MANAGEMENT CONFERENCE ROBIN LEIGH-PEMBERTON INTRODUCTION APRIL 24, 1992 - PAGE 4 C. OVERALL, THOUGH, THE BANK'S INFLUENCE TENDS TO BE INFORMAL AND IS FOUNDED ON ITS KNOWLEDGE AND EXPERTISE RATHER THAN ON STATUTE. 1. ON A PERSONAL NOTE, I HAD THE OPPORTUNITY TO ESTABLISH A BRANCH OF A COMMERCIAL BANK IN LONDON IN THE 196Os LATE AND CAN TESTIFY TO THE EXCEPTIONAL DEGREE OF SKILL AND PROFESSIONALISM WHICH PERVADE THE ORGANIZATION. D. IT IS PERHAPS FOR THIS REASON THAT THE BANK OF ENGLAND'S RESPONSIBILITIES PROBABLY RANGE MORE WIDELY THAN THOSE OF ANY OTHER MAJOR CENTRAL BANKS THAT ALSO HAVE SIGNIFICANT AUTHORITY BUT OVER A MUCH NARROWER FIELD. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SILAS KEEHN UNIVERSITY OF CHICAGO MANAGEMENT CONFERENCE ROBIN LEIGH-PEMBERTON INTRODUCTION APRIL 24, 1992 - PAGE 5 IV. BANK OF ENGLAND HAS A WIDE VARIETY OF RESPONSIBILITIE~~ED IN ALMOST THE WHOLE RANGE OF ECONOMIC POLICY CONSIDERATIONS. ~ )"r A. EXECUTES MONETARY AND EXCHANGE RATE ti'?> POLIC~, MANAGES THE NATIONAL DEBT AND NOTE CIRCULATION, ACT. AS A BANKER TO THE GOVERNMENT AND THE BANKING SECTOR, AND PROVIDES ADVICE TO THE TREASURY AND THE PRIME MINISTER ON WIDE RANGE OF ECONOMIC MATTERS. B. BANK ALSO HAS STATUTORY AUTHORITY FOR THE SUPERVISION OF THE BANKING SECTOR, AS WELL AS A MORE DIFFUSE RESPONSIBILITY FOR THE FINANCIAL SYSTEM AS A WHOLE, INCLUDING SUCH AREAS AS SECURITIES, INSURANCE AND THE FUTURES MARKETS. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SILAS KEEHN UNIVERSITY OF CHICAGO MANAGEMENT CONFERENCE ROBIN LEIGH-PEMBERTON INTRODUCTION APRIL 24, 1992 - PAGE 6 C. BECAUSE IT IS HELD IN SUCH HIGH REGARD, THE BANK HAS FREQUENTLY BEEN CALLED ON TO BRING INDEPENDENT AND UNBIASED JUDGMENTS IN A VARIETY OF AREAS, SOME WHICH SEEM ALMOST UNRELATED TO THEIR CENTRAL BANKING RESPONSIBILITIES. 1. FOR EXAMPLE, THE BANK WAS REQUESTED TO PROVIDE ADVICE WHEN THE EUROTUNNEL PROJECT WAS EXPERIENCING SOME DIFFICULTIES. 0. AND WITH THE GROWTH AND GLOBALIZATION OF WORLDWIDE BANKING AND FINANCIAL SYSTEMS, THE BANK HAS PLAYED AN INCREASINGLY IMPORTANT INTERNATIONAL ROLE. 1. THIS INFLUENCE WAS VERY EVIDENT IN 71....t. THE ADOPTION OF INTERNATIONAL CAPITAL STANDARDS FOR BANKS, IN WHICH THE BANK OF ENGLAND PLAYED A LEADING ROLE. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SILAS KEEHN UNIVERSITY OF CHICAGO MANAGEMENT CONFERENCE ROBIN LEIGH-PEMBERTON INTRODUCTION APRIL 24, 1992 - PAGE 7 E. IN ALL THESE DIVERSE RESPONSIBILITIES, THE BANK OF ENGLAND'S STANDING DOES NOT DEPEND SO MUCH ON THE LETTER OF THE LAW BUT ON THE AUTHORITY, INFLUENCE AND RESPECT COMMANDED BY THE BANK AND, ESPECIALLY, ITS GOVERNOR. V. CHOOSING SOMEONE TO TAKE ON THIS VARIED AND DEMANDING ROLE IS NEVER EASY. ~~ A. BANK OF ENGLAND HAS BEEN FORTUNATE TO H,Y!,~~OBIN LEIGH-PEMBERTON AT ITS HELM. VJ~ t .l" 1. LATEST IN A LONG LINE OF VERY DISTINGUISHED GOVERNORS. B. IN HIS EARLY YEARS, GOVERNOR LEIGH-PEMBERTON ACCUMULATED AN ACADEMIC RECORD OF CONSIDERABLE DISTINCTION. HE WAS EDUCATED AT ST. PETER'S COURT SCHOOL, BROADSTAIRS AND ETON COLLEGE. FOLLOWING MILITARY SERVICE WITH THE GRENADIER GUARDS, HE READ CLASSICS AT Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SILAS KEEHN UNIVERSITY OF CHICAGO MANAGEMENT CONFERENCE ROBIN LEIGH-PEMBERTON INTRODUCTION APRIL 24, 1992 - PAGE 8 TRINITY COLLEGE AT OXFORD WHERE HE IS NOW AN HONORARY FELLOW. C. IN ADDITION TO CONTINUING HIS FAMILY'S FARMING INTERESTS, HE HAS PRACTICED THE LAW AND HAS SERVED AS CHAIRMAN O~NT COUNTY COUNCIL -- A POSITION DESCRIBED IN ONE PUBLICATION AS ROUGHLY SIMILAR TO BEING PRIME MINISTER ON A LOCAL LEVEL. D. ALSO HELD IMPORTANT POSITION► IN INDUSTRY WHEN HE WAS APPOINTED A DIRECTOR AND THEN CHAIRMAN OF BIRMID-0UALCAST -- A MAJOR ENGINEERING COMPANY. VI. IN 1972, HE BECAME A DIRECTOR OF NATIONAL WESTMINSTER BANK, BRITAIN'S SECOND LARGEST BANK. A. WITHIN A FEW YEARS, HE ROSE TO THE CHAIRMANSHIP OF THAT MAJOR FINANCIAL INSTITUTION. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SILAS KEEHN _ UNIVERSITY OF CHICAGO MANAGEMENT CONFERENCE ROBIN LEIGH-PEMBERTON INTRODUCTION APRIL 24, 1992 - PAGE 9 B. IN THAT POSITION, PLAYED KEY ROLE IN DEVELOPING A HIGHLY EFFECTIVE MANAGERIAL TEAM AND IN DETERMINING THE BANK'S STRATEGIC DIRECTION, PARTICULARLY ITS INTERNATIONAL ACTIVITIES. VII. FOLLOWING THIS RESPONSIBILITY, HE WAS APPOINTED TO FIVE-YEAR TERM AS THE GOVERNOR 1983 OF THE BANK OF ENGLAND IN AND THEN 1988. REAPPOINTED IN A. HIS SERVICE AS THE GOVERNOR OF THE BANK HAS BEEN WIDELY ACCLAIMED IN THE MAJOR FINANCIAL PUBLICATIONS AND JOURNALS. B. HAS LED THE BANK DURING A PARTICULARLY TUMULTUOUS PERIOD -- WHICH HAS SEEN MASSIVE STRUCTURAL CHANGES IN LONDON'S INTERNATIONAL AND DOMESTIC MARKETS. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SILAS KEEHN UNIVERSITY OF CHICAGO MANAGEMENT CONFERENCE ROBIN LEIGH-PEMBERTON INTRODUCTION 24, 1992 - 10 APRIL PAGE C. UNDER HIS GUIDANCE, THE BANK SUPERVISED THE DRAMATIC CHANGES OF BIG BANG AND HAS PLAYED A KEY ROLE IN DEVELOPING INTERNATIONAL COOPERATION ON REGULATIONS AND CAPITAL RATIOS. D. GOVERNOR LEIGH-PEMBERTON HAS ALSO EMERGED AS ONE OF BRITAIN'S MOST ELOQUENT VOICES ON THE DANGERS OF INFLATION AND THE BENEFITS OF A EUROPEAN CURRENCY AND CENTRAL BANK. E. IN RECOGNITION OF THE OUTSTANDING ACHIEVEMENTS DURING HIS CAREER, HE WAS 1987. APPOINTED TO THE PRIVY COUNCIL IN VIII. VERY GREAT HONOR TO INTRODUCE OUR SPEAKER, THE RIGHT HONORABLE ROBIN LEIGH-PEMBERTON. }__q_,-~-C?~~ ~~CS\_ tr? ~- ~/"Al?, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Silas Keehn (1992, April 23). Regional President Speech. Speeches, Federal Reserve. https://whenthefedspeaks.com/doc/regional_speeche_19920424_silas_keehn

@misc{wtfs_regional_speeche_19920424_silas_keehn,
  author = {Silas Keehn},
  title = {Regional President Speech},
  year = {1992},
  month = {Apr},
  howpublished = {Speeches, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/regional_speeche_19920424_silas_keehn},
  note = {Retrieved via When the Fed Speaks corpus}
}