Stotty On Sunday: A Case of Bank Hypocrisy

Summary


IF you asked your bank manager - assuming you could get hold of him - to finance a court case in which you were accused of recklessly ignoring your duty at work, he would tell you to get stuffed.

But this is exactly what the Bank of England is doing. It is locked in a legal battle with the liquidators of the Bank of Credit and Commerce International, which collapsed in 1991 owing pounds 5billion to 80,000 depositors. The case could have been settled years ago - the Bank has already admitted incompetence so great that it was stripped of responsibility for banking supervision. The difference between that and recklessly ignoring the danger to depositors may be negligible to us, but for the two sides it is enough to launch a court case that could last 18 months, put pounds 50million into the well-upholstered trousers of m'learned friends and cost pounds 1billion in compensation. The Bank couldn't possibly pay that - so we will. All this is being done in order to protect the honour of the Old Lady of Threadneedle Street, as the B of E is quaintly known.

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Stotty On Sunday: A Case of Bank Hypocrisy

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