Mario Draghi
Encyclopedia
Mario Draghi (ˈmaːrjo ˈdraːɡi; born 3 September 1947) is an Italian
banker and economist who succeeded Jean-Claude Trichet
as President of the European Central Bank on 1 November 2011. He was previously the governor of the Bank of Italy
from January 2006 until October 2011.
, Draghi graduated from La Sapienza University of Rome under the supervision of Federico Caffè
, then earned a PhD in economics from the Massachusetts Institute of Technology
in 1976 under the supervision of Nobel
Laureates Franco Modigliani
and Robert Solow
. He was full professor at the University of Florence
from 1981 until 1991.
From 1984 to 1990 he was the Italian Executive Director at the World Bank
. In 1991, he became director general of the Italian Treasury
, and held this office until 2001. During his time at the Treasury, he chaired the committee that revised Italian corporate and financial legislation and drafted the law that governs Italian financial markets. He is also a former board member of several banks and corporations (Eni
, IRI
, BNL
and IMI).
Draghi was then vice chairman and managing director of Goldman Sachs
International and a member of the firm-wide management committee (2002–2005). A controversy existed on his duties while employed at Goldman Sachs
. Pascal Canfin
(MEP
) asserted Draghi was involved in swaps for European governments, namely Greece, trying to disguise their countries' economic status. Draghi responded that the deals were "undertaken before my joining Goldman Sachs [and] I had nothing to do with" them, in the 2011 European Parliament nomination hearings.
Draghi is a trustee at the Institute for Advanced Study
in Princeton, New Jersey
and also at the Brookings Institution
, in Washington, D.C.. He has been a Fellow of the Institute of Politics at the John F. Kennedy School of Government
, Harvard University
.
In his capacity as Bank of Italy governor, he was a member of the Governing and General Councils of the European Central Bank
and a member of the Board of Directors of the Bank for International Settlements
. He is also governor for Italy on the Boards of Governors of the International Bank for Reconstruction and Development
and the Asian Development Bank
. In April 2006 he was elected Chairman of the Financial Stability Forum, which became Financial Stability Board
in spring 2009.
, whose term as President of the European Central Bank
ended in October 2011. Then, in January 2011, German weekly newspaper Die Zeit
reported, with reference to high-ranking policy-makers in Germany and France, that it is "unlikely" that Draghi will be picked as Trichet's successor. However, in February 2011 the situation became further complicated when the main German candidate, Axel Weber
, was reported to be no longer seeking the job, reviving the chances of the other candidates. On 13 February 2011 Wolfgang Münchau, associate editor of the Financial Times
, endorsed Draghi as the best candidate for the abovementioned position. A few days later The Economist
wrote that "the next president of the world’s second-most-important central bank should be Mario Draghi". On 20 April 2011 The Wall Street Journal reported that "Wolfgang Schäuble, Germany's finance minister, is open to Mr. Draghi for the post of ECB President". A few days later the German newspaper Bild endorsed Draghi by defining him the "most German of all remaining candidates". Contrary to previous reports about France's position, on 25 April it was reported that Sarkozy now sees Draghi as a full-fledged and an adequate candidate for the job.
On 17 May 2011 the Council of the European Union – Ecofin
– adopted a recommendation on the nomination of Draghi as President of the ECB. On 24 June 2011 Draghi's appointment was confirmed by the European leaders officially as new president of the European Central Bank. This occurred after he was approved by the European Parliament
and the European Central Bank itself. Draghi has begun leading the Frankfurt
-based institution when Trichet's non-renewable eight-year term has expired on 31 October 2011, and Draghi's term would run from 1 November 2011 to 31 October 2019. Though France long backed Draghi's candidacy, the country had held up the appointment toward the end, insisting that Lorenzo Bini Smaghi
, an Italian official on the ECB's six-member board, cede his post on the board to a French representative. There were concerns that his past employment at Goldman Sachs
would hinder his path to the position, although in the end this doesn't appear to have occurred.
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Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
banker and economist who succeeded Jean-Claude Trichet
Jean-Claude Trichet
Jean-Claude Trichet is a French civil servant who was the president of the European Central Bank, a position he held from 2003 to 2011. He is also a member of the Board of Directors of the Bank for International Settlements...
as President of the European Central Bank on 1 November 2011. He was previously the governor of the Bank of Italy
Banca d'Italia
Banca d'Italia is the central bank of Italy and part of the European System of Central Banks. It is located in Palazzo Koch, Roma, via Nazionale...
from January 2006 until October 2011.
Biography
He was born in RomeRome
Rome is the capital of Italy and the country's largest and most populated city and comune, with over 2.7 million residents in . The city is located in the central-western portion of the Italian Peninsula, on the Tiber River within the Lazio region of Italy.Rome's history spans two and a half...
, Draghi graduated from La Sapienza University of Rome under the supervision of Federico Caffè
Federico Caffè
Federico Caffè was an Italian economist.- Biography :Caffè was born at Pescara.In 1936 he graduated in business sciences at the University of Rome La Sapienza. He started his career working at the Bank of Italy, later becoming a teacher at the University of Messina...
, then earned a PhD in economics from the Massachusetts Institute of Technology
Massachusetts Institute of Technology
The Massachusetts Institute of Technology is a private research university located in Cambridge, Massachusetts. MIT has five schools and one college, containing a total of 32 academic departments, with a strong emphasis on scientific and technological education and research.Founded in 1861 in...
in 1976 under the supervision of Nobel
Nobel Memorial Prize in Economic Sciences
The Nobel Memorial Prize in Economic Sciences, commonly referred to as the Nobel Prize in Economics, but officially the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel , is an award for outstanding contributions to the field of economics, generally regarded as one of the...
Laureates Franco Modigliani
Franco Modigliani
Franco Modigliani was an Italian economist at the MIT Sloan School of Management and MIT Department of Economics, and winner of the Nobel Memorial Prize in Economics in 1985.-Life and career:...
and Robert Solow
Robert Solow
Robert Merton Solow is an American economist particularly known for his work on the theory of economic growth that culminated in the exogenous growth model named after him...
. He was full professor at the University of Florence
University of Florence
The University of Florence is a higher study institute in Florence, central Italy. One of the largest and oldest universities in the country, it consists of 12 faculties...
from 1981 until 1991.
From 1984 to 1990 he was the Italian Executive Director at the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
. In 1991, he became director general of the Italian Treasury
Treasury
A treasury is either*A government department related to finance and taxation.*A place where currency or precious items is/are kept....
, and held this office until 2001. During his time at the Treasury, he chaired the committee that revised Italian corporate and financial legislation and drafted the law that governs Italian financial markets. He is also a former board member of several banks and corporations (Eni
Eni
Eni S.p.A. is an Italian multinational oil and gas company, present in 70 countries, and currently Italy's largest industrial company with a market capitalization of 87.7 billion euros , as of July 24, 2008...
, IRI
Istituto per la Ricostruzione Industriale
The Istituto per la Ricostruzione Industriale was an Italian public company set up by the fascist government in 1933 to combat the effects of the global depression on the Italian economy...
, BNL
Banca Nazionale del Lavoro
Banca Nazionale del Lavoro SpA is an Italian banking firm. Founded in 1913 as Istituto di Credito per la Cooperazione, it was nationalized in 1929. It was re-privatized and listed on the Milan Stock Exchange in 1998, before being acquired by French banking group BNP Paribas in 2006...
and IMI).
Draghi was then vice chairman and managing director of Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
International and a member of the firm-wide management committee (2002–2005). A controversy existed on his duties while employed at Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
. Pascal Canfin
Pascal Canfin
Pascal Canfin is a French politician. He is a Member of the European Parliament elected in the 2009 European election for the Île-de-France constituency.-Biography:...
(MEP
European Parliament
The European Parliament is the directly elected parliamentary institution of the European Union . Together with the Council of the European Union and the Commission, it exercises the legislative function of the EU and it has been described as one of the most powerful legislatures in the world...
) asserted Draghi was involved in swaps for European governments, namely Greece, trying to disguise their countries' economic status. Draghi responded that the deals were "undertaken before my joining Goldman Sachs [and] I had nothing to do with" them, in the 2011 European Parliament nomination hearings.
Draghi is a trustee at the Institute for Advanced Study
Institute for Advanced Study
The Institute for Advanced Study, located in Princeton, New Jersey, United States, is an independent postgraduate center for theoretical research and intellectual inquiry. It was founded in 1930 by Abraham Flexner...
in Princeton, New Jersey
Princeton, New Jersey
Princeton is a community located in Mercer County, New Jersey, United States. It is best known as the location of Princeton University, which has been sited in the community since 1756...
and also at the Brookings Institution
Brookings Institution
The Brookings Institution is a nonprofit public policy organization based in Washington, D.C., in the United States. One of Washington's oldest think tanks, Brookings conducts research and education in the social sciences, primarily in economics, metropolitan policy, governance, foreign policy, and...
, in Washington, D.C.. He has been a Fellow of the Institute of Politics at the John F. Kennedy School of Government
John F. Kennedy School of Government
The John F. Kennedy School of Government at Harvard University is a public policy and public administration school, and one of Harvard's graduate and professional schools...
, Harvard University
Harvard University
Harvard University is a private Ivy League university located in Cambridge, Massachusetts, United States, established in 1636 by the Massachusetts legislature. Harvard is the oldest institution of higher learning in the United States and the first corporation chartered in the country...
.
In his capacity as Bank of Italy governor, he was a member of the Governing and General Councils of the European Central Bank
European Central Bank
The European Central Bank is the institution of the European Union that administers the monetary policy of the 17 EU Eurozone member states. It is thus one of the world's most important central banks. The bank was established by the Treaty of Amsterdam in 1998, and is headquartered in Frankfurt,...
and a member of the Board of Directors of the Bank for International Settlements
Bank for International Settlements
The Bank for International Settlements is an intergovernmental organization of central banks which "fosters international monetary and financial cooperation and serves as a bank for central banks." It is not accountable to any national government...
. He is also governor for Italy on the Boards of Governors of the International Bank for Reconstruction and Development
International Bank for Reconstruction and Development
The International Bank for Reconstruction and Development is one of five institutions that compose the World Bank Group. The IBRD is an international organization whose original mission was to finance the reconstruction of nations devastated by World War II. Now, its mission has expanded to fight...
and the Asian Development Bank
Asian Development Bank
The Asian Development Bank is a regional development bank established on 22 August 1966 to facilitate economic development of countries in Asia...
. In April 2006 he was elected Chairman of the Financial Stability Forum, which became Financial Stability Board
Financial Stability Board
The Financial Stability Board is an international body that monitors and makes recommendations about the global financial system. It was established after the 2009 G-20 London summit in April 2009 as a successor to the Financial Stability Forum. The Board includes all G-20 major economies, FSF...
in spring 2009.
ECB candidacy
Draghi was frequently mentioned as a potential successor to Jean-Claude TrichetJean-Claude Trichet
Jean-Claude Trichet is a French civil servant who was the president of the European Central Bank, a position he held from 2003 to 2011. He is also a member of the Board of Directors of the Bank for International Settlements...
, whose term as President of the European Central Bank
European Central Bank
The European Central Bank is the institution of the European Union that administers the monetary policy of the 17 EU Eurozone member states. It is thus one of the world's most important central banks. The bank was established by the Treaty of Amsterdam in 1998, and is headquartered in Frankfurt,...
ended in October 2011. Then, in January 2011, German weekly newspaper Die Zeit
Die Zeit
Die Zeit is a German nationwide weekly newspaper that is highly respected for its quality journalism.With a circulation of 488,036 and an estimated readership of slightly above 2 million, it is the most widely read German weekly newspaper...
reported, with reference to high-ranking policy-makers in Germany and France, that it is "unlikely" that Draghi will be picked as Trichet's successor. However, in February 2011 the situation became further complicated when the main German candidate, Axel Weber
Axel A. Weber
Axel Alfred Weber is a German economist, professor and banker. He teaches at the University of Chicago Booth School of Business and is a board member and prospective chairman of UBS...
, was reported to be no longer seeking the job, reviving the chances of the other candidates. On 13 February 2011 Wolfgang Münchau, associate editor of the Financial Times
Financial Times
The Financial Times is an international business newspaper. It is a morning daily newspaper published in London and printed in 24 cities around the world. Its primary rival is the Wall Street Journal, published in New York City....
, endorsed Draghi as the best candidate for the abovementioned position. A few days later The Economist
The Economist
The Economist is an English-language weekly news and international affairs publication owned by The Economist Newspaper Ltd. and edited in offices in the City of Westminster, London, England. Continuous publication began under founder James Wilson in September 1843...
wrote that "the next president of the world’s second-most-important central bank should be Mario Draghi". On 20 April 2011 The Wall Street Journal reported that "Wolfgang Schäuble, Germany's finance minister, is open to Mr. Draghi for the post of ECB President". A few days later the German newspaper Bild endorsed Draghi by defining him the "most German of all remaining candidates". Contrary to previous reports about France's position, on 25 April it was reported that Sarkozy now sees Draghi as a full-fledged and an adequate candidate for the job.
On 17 May 2011 the Council of the European Union – Ecofin
Economic and Financial Affairs Council
The Economic and Financial Affairs Council is one of the oldest configurations of the Council of the European Union and is composed of the Economics and Finance Ministers of the 27 European Union member states, as well as Budget Ministers when budgetary issues are discussed.ECOFIN often works with...
– adopted a recommendation on the nomination of Draghi as President of the ECB. On 24 June 2011 Draghi's appointment was confirmed by the European leaders officially as new president of the European Central Bank. This occurred after he was approved by the European Parliament
European Parliament
The European Parliament is the directly elected parliamentary institution of the European Union . Together with the Council of the European Union and the Commission, it exercises the legislative function of the EU and it has been described as one of the most powerful legislatures in the world...
and the European Central Bank itself. Draghi has begun leading the Frankfurt
Frankfurt
Frankfurt am Main , commonly known simply as Frankfurt, is the largest city in the German state of Hesse and the fifth-largest city in Germany, with a 2010 population of 688,249. The urban area had an estimated population of 2,300,000 in 2010...
-based institution when Trichet's non-renewable eight-year term has expired on 31 October 2011, and Draghi's term would run from 1 November 2011 to 31 October 2019. Though France long backed Draghi's candidacy, the country had held up the appointment toward the end, insisting that Lorenzo Bini Smaghi
Lorenzo Bini Smaghi
Lorenzo Bini Smaghi is an Italian economist who has been a Member of the Executive Board of the European Central Bank from June 2005 to November 2011...
, an Italian official on the ECB's six-member board, cede his post on the board to a French representative. There were concerns that his past employment at Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
would hinder his path to the position, although in the end this doesn't appear to have occurred.
Awards and honors
- 2000 Knight grand cross OMRIOmriOmri was a king of Israel, successful military campaigner and first in the line of Omride kings that included Ahab, Ahaziah and Joram.He was "commander of the army" of king Elah when Zimri murdered Elah and made himself king. Instead, the troops at Gibbethon chose Omri as king, and he led them to...
- 2009 honorary distinction in Statistics (University of Padua)
- 2010 honorary Master in Business administration (Vicenza, CUOA foundation).
External links
- Profile (includes photo) at the European Corporate Governance Institute Website
- European Central Bank
- Banca d'Italia
- Financial Stability Board
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