Mario Draghi on Monday officially took over his duties as the new governor of Bank of Italy governor.
Draghi was tapped for the job on December 29 by the Bankof Italy's Superior Council replacing Antonio Fazio, who quit December 19 in the wake of in a banking takeover scandal.
The new governor is be the first to hold the office since its open-ended mandate was replaced by a six-year renewable term.
The change was made after Fazio, currently under investigation for insider trading and abuse of office, was accused of acting above the law in his efforts to thwart any foreign takeover of an Italian bank. Draghi was Treasury director general for ten years from 1991 to 2001 during which time he spearheaded Europe's biggest-ever privatization program and framed a new company takeover law protecting small investors, which bears his name.
At the time of his appointment the 58-year-old investment banker was Goldman Sachs' vice chairman for Europe. In the past he has represented Italy at the G7 and European Union and served on the Inter-American Development Bank, World Bank and the Organisation for Economic Cooperation and Development.
Analysts say this track record should help Draghi revive the central bank's image - as well as erasing the taint of corporate scandals involving the Cirio and Parmalat groups which took place during Fazio's watch. Draghi is thought to be much more open than Fazio to foreign banks entering the Italian banking market, lured by its high margins.
Some observers believe foreign banks will eventually drive down the high price of Italian banking services.
