BoE 'will not settle' BCCI case
The Bank of England will not settle an L850 million court case starting on Monday over its role in the world's biggest banking fraud, at BCCI, according to a source.
The BoE is being accused by the liquidator of Bank of Credit and Commerce International of knowingly not protecting depositors. BCCI collapsed in 1991 owing billions of pounds.
As the BoE is legally protected from negligence claims, the liquidator is pursuing the stronger claim of "misfeasance" - acting dishonestly or in bad faith. The source said: "This is a cynical attempt to circumvent the immunity given by Parliament by alleging dishonesty by 22 bank officials."
http://www.business.scotsman.com/banking.cfm?id=30192004and this
Lawyers acting for creditors of collapsed bank BCCI began their opening statements at the High Court on Tuesday in a case against the Bank of England.
BBC News Online had this summary of what was said in court.
The main lawyer for the complainants, Gordon Pollock QC, referred to the Bank of England as a once revered institution - he emphasised the word once.
He said he intended to show that Bank of England officals had been spinless, weak and selfish.
But he emphasised repeatedly that he did not argue that they were corrupt - although if any offical had wanted to be bribed - BCCI's founder, the late Aga Hasan Abedi was, as he put it, "your man"
Mr. Abedi could get you girls, boys, seats at the opera, or money in suitcases if you wanted. Mr. Pollock said.
http://news.bbc.co.uk/1/hi/business/3393179.stm