Bank officials to take the stand as BCCI case resumes

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The Independent
By Julia Kollewe, Banking Correspondent
27 September 2004


The Bank of England, accused of "misfeasance" in its regulation of the fraud-ridden Bank of Credit and Commerce International (BCCI), will today resume its defence in the £1bn High Court case with witnesses, including the former governor Lord George, preparing to take the witness stand in the months ahead.

After a record six-month opening this year by the counsel for Deloitte Touche Tohmatsu, which is representing about 6,500 UK depositors in BCCI, the Bank of England's counsel, Nicholas Stadlen QC, will today continue his defence. He began the Bank's case in mid-July before the court broke for a summer recess.

Mr Stadlen said then that allegations that 22 Bank of England officials acted dishonestly were "fundamentally implausible". The liquidators of BCCI argue the central bank acted recklessly by giving BCCI the go-ahead in 1980 to operate in Britain and failing to supervise it properly before revoking its licence in 1991.

Mr Stadlen opened his defence in July saying "after six months the empire strikes back", and told the court that liquidators must prove the central bank officials deliberately acted dishonestly and abused their power. Mr Stadlen said only one successful case of misfeasance had been reported in 300 years.
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