Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

BCCI AUTHORITIES TO PRESS FOR COMPENSATION

  • Comment
The local authorities which lost money in BCCI have called for compensation following today's publication of the Tr...
The local authorities which lost money in BCCI have called for compensation following today's publication of the Treasury and Civil Service Select Committee's report on the Lord Bingham's findings.

Co-ordinating committee chairman Rory Mair said: 'The publication today of the latest report of the select committee clearly shows that there is a substantial case for compensation for those depositors who lost money in the closure of BCCI.

'The original select committee report clearly stated that, in the case of local authorities, compensation should be considered if the Bank of England was shown to have failed to discharge its supervisory duties.

'On 19 July 1991 the Chancellor of the Exchequer said in the House: 'On the question of what the implications would be if maladministration were found or criticisms were made, I have to say to the House that I have no reason to think that the Bank of England has not discharged its role and duty properly and competently. If other evidence came to light, I would then have to consider the implications of that'.

'In reviewing the Bingham report, the select committee has today concluded that the Bank of England failed to discharge its supervisory duties in respect of BCCI.

'If the government wishes to retain any credibility in this matter, it has no option but to accept the logical consequences of the select committee report and enter discussions with the local authorities on the question of compensation. We will be pressing the government to do this as quickly as possible'.

  • Comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions.

Links may be included in your comments but HTML is not permitted.