(Reuters) - The Bank of Canada said on Tuesday it hired David Beers, the top analyst behind Standard & Poor’s August downgrade of the United States, to an 18-month term as special adviser to the central bank’s governor.
Beers, who is currently global head, sovereign and international public finance ratings at S&P, will start the job on February 1, 2012, the Bank of Canada said.
“David Beers is a highly regarded economist and one of the world’s leading authorities on sovereign risk. His wealth of experience will be invaluable to the bank as we build further our capacity to assess macro-financial vulnerabilities,” Governor Mark Carney said in a statement.
“David’s expertise and unique perspective on global capital markets will also augment the bank’s contributions to global regulatory reform.”
Beers will leave S&P after more than 20 years with the company. His replacement will be announced “in due course,” a spokesman for the ratings agency said.
S&P on August 5 downgraded the United States’ prized AAA-rating one notch to AA+, exacerbating a rout in global stock markets that had already been hit by Europe’s growing sovereign debt crisis and fears of a renewed U.S. recession.
At the time, Beers dismissed criticism that the downgrade was to blame for subsequent market volatility.
Before joining S&P in 1990, Beers worked as an independent consultant and as an economist at various investment dealers and financial institutions, including Salomon Brothers, Bankers Trust Co, and Marine Midland Bank, the Bank of Canada said.
It said the position of special adviser was created to bring outside perspectives to the Canadian central bank’s core policy functions and research priorities.
Beers will participate on the bank’s Monetary Policy Review committee, which advises the governing council on monetary policy issues and decisions, as well as the Financial System Review committee, which reviews global and Canadian economic trends and advises the governing council on financial system policy issues, the Bank of Canada said.