Did the Bank of England know about money manipulation during the crash?
The Serious Fraud Office are going to investigate the Bank of England, with particular interest in how they injected cash into the money market at the peak of the financial crisis. Of course, the bank did their own inquiry into all this, and the findings from the were handed over to the Serious Fraud Office.
The Bank of England (BoE) confirmed that there was a new investigation, but for some reason, didn't want to talk about it too much.
In a statement, the BoE said: "Given the SFO investigation is ongoing, it is not appropriate for the bank to provide any additional comment on the matter at this time." The SFO said that they are "investigating material referred to it by the Bank of England concerning liquidity auctions" during the crash, most notably the period just after the collapse of Northern Rock.
The chairman of Parliament's Treasury Select Committee (TSC), Andrew Tyrie MP, chipped in: "The bank referred this to the Serious Fraud Office when Lord Grabiner's initial findings were made clear to them - this was the right thing to do. We must now await the outcome of the SFO’s work. The sooner their findings are published the better."
As an aside, the BoE announced earlier today, the historic low base rate of 0.5% would be in force for 72 months.