3 November – LAWFUEL – The Law News Network – The case brought by the liquidators of the Bank of Credit and Commerce International against the Bank of England and 22 of its present and former staff collapsed this morning when all the allegations were unconditionally withdrawn in the High Court.
Mervyn King, Governor of the Bank of England, said: “I am delighted that the allegations of dishonesty against 22 staff of the Bank of England have been unconditionally withdrawn. There has never been a shred of evidence to support these disgraceful allegations, and the case has collapsed as we always expected it would. The Judge himself said this morning, the allegations against all 22 Bank Staff were “wholly without foundation”.
The foolish determination to pursue a hopeless case for so long has also led to a huge waste of creditors’ and taxpayers’ money, and I hope everyone concerned will take a close look at how and why such a very weak case took 12 years to come to an end. The Bank will be seeking the largest possible compensation for its costs.”
The Judge, Lord Justice Tomlinson, said this morning “…my careful study of the documents and my consideration of them, and of all the inherent probabilities, and my consideration of Mr Quinn’s evidence and of your [Mr Cooke’s] evidence, have left me in no doubt that the very serious allegations of impropriety and dishonesty against you are wholly without foundation.” The Judge said later that his remarks about Mr Cooke and Mr Quinn applied to every officer of the Bank and to the Bank of England. 22 Bank officials in total were accused of dishonesty.
BCCI was closed by the Bank of England in 1991 after major frauds came to light. The action against the Bank of England was announced in 1993 by the Liquidators of BCCI, and the trial started in the High Court in London on 13 January 2004 before Mr Justice Tomlinson. Bank of England News Release
The Liquidators accused the Bank of England and 22 present and former staff members of misfeasance in public office. This required the claimants to prove dishonesty and bad faith on the part of the Bank and individual officials. These allegations have been unconditionally withdrawn.