Lord Grabiner is called in to lead Bank forex probe
LORD Grabiner was hired yesterday to head the investigation into the foreign exchange scandal at the Bank of England.
The heavyweight’s appointment is intended to indicate how seriously the Bank takes allegations that its staff knew about manipulation or even encouraged such behaviour.
Grabiner will lead the probe, supported by law firm Travers Smith LLP which has been working on the case since October 2013, when the Bank says it first found out about the claims.
He will be given unlimited access to all staff and Bank records in his investigation.
So far the Bank has suspended one member of staff after concerns in the FX market were not sent upward to more senior staff.
But the institution has found no evidence so far that staff endorsed or encouraged market manipulation.
“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, chairman of the Court of the Bank of England.
Lord Grabiner is a QC with a high profile in the world of commercial law and also sits as a deputy High Court judge. The peer also has business experience, sitting on the board of Arcadia as a non-executive director.
The Bank of England is also appointing a new deputy governor to shake up its relationship with market participants.