Series Fraud office investigates the Bank of England
Duncan Richardson, News Editor
5 Mar 2015, 4:07 p.m.
The Serious Fraud Office is investigating the Bank of England over how they conducted their money market auctions following the 2008 economic crisis. The liquidity auctions enabled banks to tap additional funds during the height of the credit crunch.
The interest rate paid on the cash was dependant on how long the banks needed to borrow the money and how much collateral could be put up.
It is still unclear if the Serious Fraud Office is investigating BoE officials or employees of the UK’s largest banks. The SFO started their investigation after being handed the results of an inquiry undertaken by Lord Grabiner into possible manipulation and rigging of the Bank of England’s auctions.
The BoE commissioned the Lord Grabiner investigation and then handed the results to the Serious Fraud Office. On Tuesday the BoE confirm they had referred 42 potential cases of market manipulation to the Financial Conduct Authority since the new whistleblowing regulations came into force.
Mark Carney the governor of the BoE, declined to comment when MPs asked him about potential manipulation of the banks liquidity auctions.