ZURICH (Reuters) – German Chancellor Angela Merkel and French President Nicolas Sarkozy are backing the candidacy of the head of Switzerland’s central bank to lead the Financial Stability Board, a newspaper reported on Sunday.
The FSB, the G20′s regulatory task force, is charged with making sure bank regulations are strong enough to prevent another financial crisis.
It has been headed by Mario Draghi, who will take over as European Central Bank president on November 1. Swiss National Bank Chairman Philipp Hildebrand and Bank of Canada Governor Mark Carney are vying for the job.
Heading the FSB would not require the incumbent to give up his central bank governorship. An announcement is expected at the November 3-4 G20 summit.
Citing a source familiar with the election process, the Swiss paper SonntagsZeitung said Merkel favored Hildebrand and also convinced Sarkozy to back him. In exchange, Switzerland had to support Christine Lagarde to head the International Monetary
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