“I would be honoured to extend my time of service as Governor for an additional year to the end of June 2019. By taking my term in office beyond the expected period of the Article 50 process, this should help contribute to securing an orderly transition to the UK's new relationship with Europe.
The FT is out with a report that suggests Carney's tenure at the BOE may indeed be coming to an end, when it reported that "the BoE declined on Sunday to dismiss speculation that the governor might announce his decision this week alongside the quarterly inflation report."
According to several British newspaper, including The Times and Mail Online, Mark Carney’s "self-imposed deadline" for declaring whether he will stay in office beyond 2018 is fast approaching, and the central banker may decide to step down as soon as next week. The 51-year old Canadian may announce his decision "within days" at his next scheduled public appearance on Thursday.
In what may or may not be a coincidence, just hours after Bloomberg reported that DB launched a probe into whether it "misstated" derivatives, moments ago the FT reported that the Bank of England is seeking details from large British banks on their current exposure to Deutsche Bank and some of the biggest Italian banks, including Monte dei Paschi, "amid mounting market jitters over the health of Europe’s financial sector."
Sterling is being pounded back below 1.21 - weakest since the flash crash lows, back to 31 year lows. The drop lacks an obvious trigger (more technical levels), but as The FT reports, nerves appear to be building in the run-up to a scheduled appearance by Bank of England governor Mark Carney to a House of Lords committee at 15:35 London time.
If governments allow banks to shut down bank accounts of individuals or companies without a fair trial and due legal process, it will create a very dangerous situation indeed. In this environment, buying gold is rational behaviour to even the biggest paper-bugs out there. The current monetary experiment of massive QE is no longer the main concern of prudent investors and institutions, it is now combined with negative interest rates and bail-ins.