By TraderVox.com
Tradervox (Dublin) – Lawmakers in UK have pushed for an inquiry into the crisis response strategies taken by the Bank of England Governor Mervyn King. This has come at a time when the BOE is preparing to take over financial regulation in the country. The court has been pushed to order and investigation on some of the BOE’s actions which include the bank’s conduct after Lehman Brothers Holdings Inc. collapsed. Lawmakers want the investigation to cover Emergency Liquidity Assistance program which was undertaken in 2008 and 2009; they also want an investigation on the framework for providing liquidity to banks, and capability of the monetary policy committee to forecast economic parameters.
The decision by the bank to have the BOE’s investigated came after lawmakers who are debating a bill to give the BOE more power pushed for it. The bank of England had earlier been investigated in January, but the governor said that he would welcome any investigation if it were deemed necessary by the cross-party committee of lawmakers.
According to Andrew Tyrie, the investigation into the handling of financial crisis is necessary as lawmakers have not yet come up with conclusive solutions to the issues they are supposed to address. Andrew Tyrie chairs the Treasury Select Committee which oversees the Bank of England. Mr. Tyrie have also criticized The Court, which is the BOE’s governing body, saying that it refused to disclose discussions it held during the financial crisis which he claims prevented the parliament from holding the Bank of England accountable for the mistakes made in dealing with financial crisis.
The investigation into the BOE’s conduct during the crisis will be carried out by the former BOE policy maker Ian Plenderleith, former head of US research and forecasting at the Fed David Stockton, chief executive officer of Renshaw Bay LLP Bill Winters who is also a member of the UK Independent Commission on Banking.
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