Controversy over Philipp Hildebrand continues to rage. This from the FT’s Haig Simonian:
The Swiss National Bank will pay its former chairman a full year’s salary of about SFr900,000 ($942,000), in spite of his stepping down voluntarily in only the second week of the year.
The bank said Philipp Hildebrand’s contract entitled him to 12 months’ pay. The first six months covered his notice period, with the remainder compensating him for a clause in his contract that prevents him from working for another bank until next January.
The pay-off will stoke a political storm in Switzerland over Mr Hildebrand’s departure following revelations of currency transactions by his wife, and is likely to fuel the wider debate in Europe over bankers’ remuneration.
At Sfr900,000, Mr Hildebrand’s salary is high for the head of a central bank. The terms of his severance package are also generous.
Mario Draghi. Image by Getty.
Welcome to Money Supply’s live blog covering ECB president Mario Draghi’s first press conference of 2012.
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14.36 The live blog is now closed.
14.34 The press conference ends. The euro is now up 0.72 per cent against the dollar for the day.
14.33 Mr Draghi on whether today’s successful Spanish bond auction was evidence of the Sarkozy/Noyer trade:
The European Central Bank’s governing council has held its main interest rate at 1 per cent.
The marginal lending and deposit rates also remain at 1.75 per cent and 0.25 per cent.
The Bank of England’s Monetary Policy Committee has, as expected, held rates at 0.5 per cent and the size of the asset purchase programme at £275bn.
Next month is expected to be a different matter however, with analysts expecting the MPC to announce more quantitative easing.