Fraud office investigates Bank of England liquidity auctions

LIQUIDITY auctions held by the Bank of England during the financial crisis are being investigated by the Serious Fraud Office (SFO).

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

Liquidity auctions help commercial banks to access extra cash for lending.

BBC News reported that the Bank confirmed details of the investigations but said it was “not appropriate” to comment further.

The Bank was investigating whether staff knew or assisted in possible manipulation of auctions it held in 2007 and 2008, The Financial Times reported towards the end of last last year.

It appointed senior barrister Lord Grabiner QC to conduct an independent inquiry, and then referred the matter to the SFO “following the conclusion of that initial inquiry” in November.