Serious Fraud Office launches investigation into the BOE

Graham_Devon

Quite shocked by this really.... in an unprecedented move, the Serious Fraud Office has started an investigation into the BOE.

The Serious Fraud Office (SFO) is investigating the way the Bank of England lent money to banks during the financial crisis, the Bank has said.

The Bank commissioned its own inquiry last year, then referred the matter to the SFO.

Liquidity auctions enabled banks to access extra cash during the credit crunch that followed the collapse of Northern Rock.
The Bank confirmed the investigation but would not comment further.

The Financial Times reported in November that the Bank was investigating whether staff knew or assisted in possible manipulation of auctions it held in 2007 and 2008.

If fraud is found to have occured.... what can realistically happen?

http://www.bbc.co.uk/news/business-31739051

chewmylegoff

Graham_Devon wrote: »

If fraud is found to have occured.... what can realistically happen?

The individuals involved could be prosecuted under relevant legislation eg the Fraud Act 2006 or the common law offence of misconduct in a public office.

Thrugelmir

Graham_Devon wrote: »

Quite shocked by this really.... in an unprecedented move, the Serious Fraud Office has started an investigation into the BOE.

People that worked at the BOE rather than the BOE itself. There is a distinction.

purch

Graham_Devon wrote: »

If fraud is found to have occured.... what can realistically happen?

The Bank should be applauded for it's actions.

CLAPTON

chewmylegoff wrote: »

The individuals involved could be prosecuted under relevant legislation eg the Fraud Act 2006 or the common law offence of misconduct in a public office.

yes of course the individuals will be prosecuted like all the other wrong doers in the public sector

System

Graham_Devon wrote: »

If fraud is found to have occured.... what can realistically happen?

Big IF there.

On past experience there will be a long and very expensive investigation, after which the case will collapse, the chief of the SFO will be promoted to somewhere where he (or is it she?) can do even more harm, and some high-profile officials whose names have been besmirched will threaten to sue the SFO.

The SFO will settle out of court for large but not quite such enormous damages as claimed, and then everything will settle down again and carry on as normal.

lvader

I don't think we even know that if fraud was committed wether it was by the BoE, the banks or both.

Babbawah

The last time I heard anything as ridiculous as the prospect of the BoE being investigated for serious irregularities was 'round about the time of every general election I'm old enuff to remember.

There isn't a general election looming is there?

chewmylegoff

CLAPTON wrote: »

yes of course the individuals will be prosecuted like all the other wrong doers in the public sector

You will of course have noted my careful use of the word "could". They might find someone sufficiently junior who did something nasty to throw to the lions as long as everyone senior can claim they were unaware of it, you never know.

You could also remove the words "in the public sector" from your post without altering its sarcastic accuracy.