25 June 2014

Bank of England legal costs double

The Bank of England more than doubled its legal costs to £5m.

By Shannon Sweeney

The Bank of England has doubled its legal costs due to an investigation into the foreign-exchange market. Claudio Divizia

The Bank of England has spent £5m on legal fees this year, more than double what it spent last year, according to its annual report. The £5m spent on legal feels in the year until February 2014, whereas the bank only spent £2m the previous 12 months.  Figures come as the BoE finds itself involved into a worldwide investigation into the foreign-exchange market and alleged manipulation. At least three dozen traders have been suspended, replaced or fired across 12 banks, and one official at the BoE has also been suspended.

Internal review

The BoE has conducted an internal review with external lawyers, who investigated if any employees were involved with or aware of the potential of manipulation of the foreign exchange market, in addition to the sharing of confidential client information. The bank said it would defer publishing its forex-investigation report until the investigation is complete. Source: The Financial Times

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