is that caruana's predecessor, new york federal reserve chairman william mcdonough, left large shoes to fill. mcdonough's unexpected retirement in june left critics wondering whether his successor would be able to hold together a global project. “ there were definitely advantages in having a superpower in charge of this committee, ” said the basel committee member. karel lannoo, head of the brussels - based think tank center for european policy studies, said caruana is a strong player with anti - establishment nuances who should be able to push through the accord and even impart some spanish character to it. “ caruana is, in the spanish context, very well regarded, ” said lannoo, a frequent adviser to the european commission and a member of the academic european shadow regulatory commission. “ he was a broker. he knows market risk. he worked on the trading floor, ” lannoo said. lannoo and the shadow committee are critics of the accord, saying its overly complex nature may in fact heighten systemic threats by “ capturing ” regulators who would be required to take a more active role in banks'daily operations. revolution in the making the new accord, now over five years in the making, represents a revolution for the banks who will adopt it. it leaves the first accord's simple dictates behind and offers a menu ranging from basic to complex. a second basel committee member, who also requested anonymity, said he had few doubts that the technocrat caruana was the right choice for the job due to his expertise in such a complex field. “ this is not new territory for jaime, ” he said. indeed, some critics of the accord say a technocrat like caruana is just who is needed to make sure that the byzantine draft is moulded into shape before being finalised by the end of this year. caruana, a 51 - year - old valencian, studied telecommunications engineering and then qualified as a government economist. those who have worked with him say he is a real technology fan, which given his studies is no surprise. the current controversy over the basel reform is probably a source of discomfort for caruana, who keeps himself to himself. “ he is very simple and discreet, and shys away from limelight, ” says a former colleague. some feared that the independence of the bank of spain might be brought into question when caruana was named governor in july 2000,

some developing nation markets because they lack the sophisticated risk - measurement techniques used by the world's biggest banks. indeed, the accord could smooth the punishing volatility of capital flows in and out of emerging markets as banks and investors better understand lending risks by applying the new rules. “ good risk management should also support emerging markets, ” he said. caruana said he welcomed china's announcement in august that it would delay adoption of the new accord, introducing its own rules in the meantime as its capital - weak banks struggled to modernise and reform. “ it was perfectly consistent with what we were saying... a right timing and a proper sequencing was important, not to rush, ” he said. * * * caruana, man of simple taste, faces complex basel ii bank of spain governor jaime caruana is a man of simple tastes. a recent visitor to the bank of spain commented on the elaborate chandeliers in a conference room, a mass of coloured glass grapes. “ i love those chandeliers, ” the visitor said. “ personally i find them rather excessive, ” caruana replied. for a fan of the simple, it's no small irony that caruana is driving a highly complex rewrite of global bank safety rules as the head of the basel committee on banking supervision, in one of the most dramatic and controversial financial reforms ever. in his most difficult job to date, caruana took control of the committee at a time of unprecedented criticism for new basel capital accord or basel ii, designed to replace the 1988 accord that set out how banks allot cash to buffer against surprise risks. the agreement being drafted by global regulators is now under fire from banks who say it is convoluted, expensive, heavy - handed and poorly tested, and who now seek to stall or derail it. not devoid of a dry sense of humour and with a shy smile, caruana is known as a diligent and rigorous technocrat, a fan of teamwork who avoids showiness. “ the core of the issue is whether caruana will be able to demonstrate his leadership in the next couple of months, ” said one committee member who works directly with caruana, who spoke under the condition of anonymity. “ it's not easy to guide such a group of self - confident people, ” the committee member said. “ he's just trying to fight his way. ” part of the problem