Bank of England facing legal move by Barings creditors
Creditors of collapsed merchant bank Barings are reported to be planning to launch a legal action against the Bank of England claiming tens of millions of pounds.
They believe the bank, brought down by rogue trader Nick Leeson, was in part responsible for their losses because of its alleged failure to properly supervise Barings, the Independent on Sunday reported yesterday, on the fifth anniversary of the bank’s £860m collapse.
Barings creditors have been watching the progress of action taken against the Bank of England by Deloitte & Touche, liquidators of the Bank of Credit and Commerce International.
Ernst & Young, liquidator to Barings, is pursuing action against Coopers & Lybrand, which acted as the 233-year-old bank’s auditor. The case is due to come to trial next year.
Last week a former senior manager at Barings, Ron Baker, lost appeal against moves by the DTI to have him disqualified as a director.