New Bank Ensnared In Rategate


Surprise! It’s the Bank of England.

The Bank of England suspended a staff member amid an internal probe into whether officials knew about or played a role in manipulation of foreign-exchange markets, sending a sprawling global investigation of banks straight to the very top of London's financial food chain.

The central bank on Wednesday also released minutes of past internal meetings that showed officials repeatedly discussed concerns about possible currencies manipulation, in one case dating back to 2006. It said it had hired an outside law firm to perform an independent investigation into its employees' conduct….

The Bank of England's role has been under escalating scrutiny for months. Several of the fired and suspended bank traders, including Citigroup Inc.'s former chief European trader Rohan Ramchandani, have at times served on a committee hosted by the central bank that serves as a forum for discussing industry issues….

But its employee was suspended in connection with compliance with the bank's policies on managing internal records and escalating important information to senior central-bank staff. That appears to be in relation to the April 2012 meeting, according to a person familiar with the decision.

BOE Suspends Staff Member in Forex Probe [WSJ]