Bank of England investigated by SFO over liquidity auction

The Bank of England is being investigated by the Serious Fraud Office (SFO) in relation to liquidity auctions held during the financial crisis.

Liquidity auctions between 2007 and 2008 enabled banks to inject extra cash into financial markets during the credit crunch that followed the collapse of Northern Rock. Banks were invited to bid to borrow funds from the Bank of England in exchange for collateral to ensure they were able to function as liquidity dried up.  The scope of the investigation remains unclear: is unknown whether any Bank employees are suspected of any involvement in attempts to rig auctions. The Bank has already conducted its own independent investigation into the matter, led by Lord Grabiner QC, before re...