Bank of England slams "paranoid conspiracy allegations" in BCCI case

0 Comments | AFP, January, 2004

LONDON (AFP) — Bank of England lawyers rejected as "paranoid conspiracy allegations" charges that officials deliberately lied over the collapse of the Bank of Credit and Commerce International in 1991.

The central bank is battling a lawsuit in the High Court in central London launched by BCCI liquidators Deloitte and Touche, who are seeking compensation for some of the failed bank's thousands of depositors.

Gordon Pollock QC, lawyer for Deloitte and Touche, told the court that up to a dozen Bank of England officials gave evidence to an inquiry into the saga in 1992 that they knew to be untrue or misleading.

Nicholas Stadlen QC, representing the Bank of England replied: "That is one of the outrageous allegations which in due course the Bank (of England) will...