Bank of England threatened over BCCI

[Brian Turner]

http://news.bbc.co.uk/1/hi/business/3391379.stm

Bank of England officials "shut their eyes and turned away" instead of clamping down on fraudulent activity at BCCI, the High Court has been told.


Liquidators of the collapsed bank are suing the UK's central bank for about £1bn for "knowingly or recklessly" failing in its supervisory role.

They are acting on behalf of 6,500 UK-based depositors, who lost money when the rogue bank was shut down in 1991. The Bank of England says it plans to defend itself "vigorously".