Bank man quits over Barings

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The Independent Online
A Bank of England executive is believed to have quit as a result of criticism of the Bank's role in the Barings scandal.

The Bank's inquiry report into the collapse of Barings under losses of nearly pounds 900m, to be published on Tuesday by the Chancellor, Kenneth Clarke, is expected to contain criticism of the role played by the its own supervision department.

The executive, a senior member of the supervision department, is thought to have resigned this week as a result of the report's findings. The Bank refused to comment on the matter last night.

The Board of Banking Supervision, which has carried out the investigation into the causes of the Barings collapse, consisted of Eddie George, the Governor of the Bank of England, Brian Quinn, the executive director responsible for banking supervision, and six other outside members from merchant banks and accountants.

Most of the responsibility for the disaster will be laid on Barings' lack of adequate internal controls, and the failure by senior executives to spot and halt the massive derivatives speculation by Nick Leeson, their senior trader in Singapore. Mr Leeson is current being held in Frankfurt awaiting extradition proceedings.

But Westminster sources said the report would also carry a section on the Bank of England's role in regulating the operation.

"The blame has concentrated on Barings and the report is likely to blame those who have already gone," said one source. "But it will have to deal with the Bank of England's supervisory role."

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