Kerry slams BoE for Bank of Credit disaster [View All]

[JI7]

<LONDON: The defeated US Presidential candidate Senator John Kerry has slammed the Bank of England over its handling of the Bank of Credit and Commerce International (BCCI) disaster and warned that London remains vulnerable to another major scandal.

Expressing his solidarity with the creditors of the BCCI, Senator Kerry told the Sunday Observer newspaper: "The Bank of England failed to supervise BCCI properly."

Kerry is an acknowledged expert on the long-running BCCI affair, having led a US Senate investigation into the rogue bank more than ten years ago.

BCCI, headquartered in London, collapsed in 1991 with undeclared debts of 7 billion pounds.

He said the banking supervision had improved since BCCI episode but warned it was "still necessary" for regulators on both sides of the Atlantic to tighten their anti-money laundering procedures.

"Financial transparency is more important than ever, and we're going to need to continue to be vigilant to prevent any would-be rogue bank from creating another round of victims," he said.

BCCI's victims are currently suing the Bank of England for up to one billion pounds as compensation, alleging that its officials acted with "willful negligence amounting to misfeasance in public office." >

http://economictimes.indiatimes.com/articleshow/964026.cms