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Bank of England liquidity auctions probed by fraud office | Bank of England liquidity auctions probed by fraud office |
(about 5 hours later) | |
The Serious Fraud Office (SFO) is investigating liquidity auctions held by the Bank of England during the financial crisis, the Bank has said. | |
The Bank commissioned its own inquiry last year and then referred the matter to the SFO. | |
Liquidity auctions are a process in which commercial banks can access extra cash. | Liquidity auctions are a process in which commercial banks can access extra cash. |
The Bank confirmed details of the investigations but said it was "not appropriate" to comment further. | |
The Financial Times reported in November that the Bank was probing whether staff knew or assisted in possible manipulation of auctions it held in in 2007 and 2008. | |
The Bank has now confirmed it appointed Lord Grabiner, a senior barrister, to conduct an independent inquiry into the liquidity auctions. | |
It said it referred the matter to the SFO "following the conclusion of that initial inquiry" in November. | |
'Sooner the better' | |
Andrew Tyrie MP, chairman of the House of Commons Treasury Select Committee, said that the referral was the "right thing to do". | |
"We must now await the outcome of the SFO's work," he said. | |
"The sooner their findings are published, the better." | |
The SFO simply confirmed it was "investigating material referred to it by the Bank of England concerning liquidity auctions" in 2007 and 2008. | |
Lord Grabiner previously led an investigation in March over whether Bank staff had played any part in foreign exchange rate manipulation. | |
Earlier this week the Bank's governor, Mark Carney, declined to comment when MPs asked him about the probe. |