Prof. Leo Leiderman, who was tapped to be the next Governor of the Bank of Israel, informed the prime minister and the finance minister today that he was removing his candidacy for the post.
Leiderman said that, after intensive discussion with his family in the past two days, he prefers to remain working in a private capacity at Tel Aviv University and Bank Hapoalim.
Leiderman's announcement dismayed the Prime Minister's Bureau, for which it was a bolt from the blue. Just today, a statement was issued on the prime minister's behalf to the effect that Leiderman would appear before the Turkel Committee on public appointments for his candidacy to be examined.
Eighteen minutes after Leiderman's announcement, the Prime Minister's Bureau issued the following statement: "Governor of the Bank of Israel designate Prof. Leo Leiderman informed Prime Minister Benjamin Netanyahu and Minister of Finance Yair Lapid a short time ago that he was removing his candidacy for the post. The meeting scheduled for Prof. Leiderman with the Turkel Committee will not take place. The prime minister and the finance minister express their regret at the decision."
Leiderman was appointed Governor of the Bank of Israel this week after Prof. Jacob Frenkel withdrew his candidacy because of the affair of alleged shoplifting at Hong Kong Airport. After Leiderman's appointment, acting Governor of the Bank of Israel Dr. Karnit Flug announced her resignation, after being passed over for the governorship and being given the cold shoulder by Netanyahu. She was known to be favored by outgoing governor Prof. Stanley Fischer as his successor.
Leiderman's withdrawal was apparently provoked by letters sent to the Turkel Committee claiming that the background to his departure from Deutsche Bank, where he was head of emerging markets research in the 2000s, was allegations of sexual harassment.
"Globes" revealed yesterday that Leiderman's appointment provoked dissent among members of the Bank of Israel Monetary Committee, some of whom considered resigning. One of them, Prof. Rafi Melnick, expressed dissatisfaction with the appointment.
Published by Globes [online], Israel business news - www.globes-online.com - on August 2, 2013
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