The Special Resolution Unit was created in February under the Banking Act 2009 and is responsible for dealing with distressed banks and building societies.
As part of the act, a Special Resolution Regime was established to develop a framework for dealing with troubled institutions under the oversight of the Bank of England, the Treasury and the Financial Services Authority.
Bailey has been acting head of the Special Resolution Unit since its creation. In addition, since January 2004, he has been executive director for banking services and chief cashier at the Bank of England, and will continue in these roles. Bailey will report to Paul Tucker, the Bank's deputy governor for financial stability.
He joined the Bank in 1985, and has held numerous positions, including senior manager for policy, risk and special operations, and private secretary to the governor, as well as head of the international economic analysis division in monetary analysis.