The Bank of England has appointed Anthony Grabiner QC to help investigate if any of its staff may have been involved in foreign exchange rate manipulation for almost a decade.
Lord Grabiner, who has was appointed by the Bank’s oversight committee, will continue on from where the law firm Travers Smith started to check whether any of its staff took part in forex market manipulation between 2005 and 2013.
Besides obtaining confirmation of possible rigging, Lord Grabiner will also investigate whether the Bank’s employees were aware of the forex manipulation. He will also gain exclusive access to the Bank’s information, materials, employees as well as forex experts.
“The oversight committee believes that it is essential that matters raised by the Bank’s initial review should be thoroughly and independently examined and that the Bank’s executive should act on any lessons learned,” said Sir David Lees, Chair of the Court and the Oversight Committee.
The Bank’s oversight committee, which is composed of non-executive directors, will use the findings of the investigation to improve procedures and processes within the Bank.
Allegations that the bank employees may have potentially been aware or took part in the rigging of forex markets surfaced last year. Mark Carney, the Bank’s governor, told MPs last week that the scandal may potentially exceed the manipulation of Libor rate, which saw big banks fined billions of dollars on either side of the Atlantic.
Lord Grabiner previous high profile assignment was when he chaired the News Corp’s standards committee following the phone-hacking scandal. He is rumoured to charge 3,000 pounds per hour for his services, though he is expected to charge the Bank a lower rate.
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