Bank of England begins staff investigation

The Bank of England is examining whether its employees may have known about or influenced possible manipulation of auctions during the economic crisis.

The Financial Times reports that a formal inquiry into the matter has already started and is possibly being headed up by a lawyer who examined the central bank’s role in to a previous foreign exchange scandal.

A statement from the Bank of England said it could not comment further on the possible remit of the inquiry.

“If the bank were conducting an investigation or review of any of its activities, as it does from time to time, it would be wholly inappropriate to provide a running commentary via the press,” the spokesman said.

“I can tell you that no actions have been taken or are currently being contemplated against any employee of the Bank.”

The newspaper claims the investigation will focus on money-market auctions held towards the end of 2007 and the start of 2008, with ten staff members being interviewed as part of the enquiry.

Recently, the Bank of England conducted an inquiry into its role in a foreign exchange trading incident. Lawyer Anthony Grabiner found no evidence of any improper behaviour.

Earlier this month, the Bank of England opted to hold interest rates at a record low of 0.5 per cent for a further month. It also voted not to extend its quantitative easing programme beyond the £375 billion already spent.

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