Bank's report on Barings delayed

BY JOHN EISENHAMMER

Financial Editor

The inquiry by the Bank of England into the collapse of Barings has been delayed for a second time.

The Treasury confirmed yesterday that the findings of the official inquiry would finally be made public in mid-to-late July.

A Bank of England spokesman said a full report would be passed to Kenneth Clarke, the Chancellor, in early July. There has been considerable criticism of the time taken over the investigation, and the slippage in the completion date.

Shortly after Barings collapsed in late February, the Bank informed ING, the new Dutch owner of the merchant bank, that the inquiry would take six to eight weeks.

Later, Eddie George, the Bank's Governor, told the Commons Treasury Committee that the target date had shifted to early June. This has now been put back again to July.

But the Bank said yesterday that instead of issuing two reports, the first on how the collapse occurred, followed by another on the lessons to be learnt, it now intended to compress them into a single report. It appears that nothing could have been published until the second report had been handed to the Treasury, which would have delayed the process until the autumn.

"There is no doubt that the Treasury and the Bank of England have responded to considerable public pressure to get this report into the open," said Alastair Darling, Labour's City spokesman, who will be writing to the Chancellor today to make sure the report is made public before Parliament goes into summer recess in late July.

"We are fairly confident that we will be able to release the report to Parliament before it breaks for summer," a Treasury spokesman said. It is most important the report is issued when Parliament is sitting, because only then will it enjoy parliamentary privilege. This is needed to give the Bank protection from any possible claims from aggrieved individuals named in the report.

If the Treasury does not manage to publish before late July, this would mean a further delay until the House resumes sitting in mid-November after the party conferences.

The fact-gathering by the Bank is now complete. The delay into July will be taken up showing individuals named in the report those passages relevant to them, and with completing the part on the lessons to be learnt by other banks and the regulatory authorities.

ING yesterday announced the first stage of the integration of its businesses, saying that Barings would now assume responsibility for all of the group's securities business in the US and UK.

This means about 600 ING staff in the US and about 60 in London will come under the Barings umbrella.

ING said it wanted to recruit a personality with a high City profile to head Barings investment bank when the restructuring was complete.

Comment, page 33

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Mortgage Advisor - OTE £95,000

£40000 - £95000 per annum: Recruitment Genius: This is an exciting opportunity...

SThree: Trainee Recruitment Consultant

competitive: SThree: Are you passionate about sales?Do you have a keen interes...

Recruitment Genius: Loan Adviser - OTE £30,000

£17000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...

Recruitment Genius: Sales Assistant / Buyer

£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...

Day In a Page

Isis in Syria: Influential tribal leaders hold secret talks with Western powers and Gulf states over possibility of mobilising against militants

Tribal gathering

Influential clans in Syria have held secret talks with Western powers and Gulf states over the possibility of mobilising against Isis. But they are determined not to be pitted against each other
Gaza, a year on from Operation Protective Edge: A growing population and a compromised and depleted aquifer leaves water in scarce supply for Palestinians

Gaza, a year on from Operation Protective Edge

A growing population and a compromised and depleted aquifer leaves water in scarce supply for Palestinians
Dozens of politicians, bureaucrats and businessmen linked to Indian bribery scandal die mysteriously

Illnesses, car crashes and suicides

Dozens of politicians, bureaucrats and businessmen linked to Indian bribery scandal die mysteriously
Srebrenica 20 years after the genocide: Why the survivors need closure

Bosnia's genocide, 20 years on

No-one is admitting where the bodies are buried - literally and metaphorically
How Comic-Con can make or break a movie: From Batman vs Superman to Star Wars: Episode VII

Power of the geek Gods

Each year at Comic-Con in San Diego, Hollywood bosses nervously present blockbusters to the hallowed crowd. It can make or break a movie
What do strawberries and cream have to do with tennis?

Perfect match

What do strawberries and cream have to do with tennis?
10 best trays

Get carried away with 10 best trays

Serve with ceremony on a tray chic carrier
Wimbledon 2015: Team Murray firing on all cylinders for SW19 title assault

Team Murray firing on all cylinders for title assault

Coaches Amélie Mauresmo and Jonas Bjorkman aiming to make Scot Wimbledon champion again
Wimbledon 2015: Nick Bollettieri - Vasek Pospisil must ignore tiredness and tell himself: I'm in the quarter-final, baby!

Nick Bollettieri's Wimbledon Files

Vasek Pospisil must ignore tiredness and tell himself: I'm in the quarter-final, baby!
Ashes 2015: Angus Fraser's top 10 moments from previous series'

Angus Fraser's top 10 Ashes moments

He played in five series against Australia and covered more as a newspaper correspondent. From Waugh to Warne and Hick to Headley, here are his highlights
Greece debt crisis: EU 'family' needs to forgive rather than punish an impoverished state

EU 'family' needs to forgive rather than punish an impoverished state

An outbreak of malaria in Greece four years ago helps us understand the crisis, says Robert Fisk
Gaza, a year on from Operation Protective Edge: The traumatised kibbutz on Israel's front line, still recovering from last summer's war with Hamas

Gaza, a year on from Operation Protective Edge

The traumatised kibbutz on Israel's front line, still recovering from last summer's war with Hamas
How to survive electrical storms: What are the chances of being hit by lightning?

Heavy weather

What are the chances of being hit by lightning?
World Bodypainting Festival 2015: Bizarre and brilliant photos celebrate 'the body as art'

World Bodypainting Festival 2015

Bizarre and brilliant photos celebrate 'the body as art'
alt-j: A private jet, a Mercury Prize and Latitude headliners

Don't call us nerds

Craig Mclean meets alt-j - the math-folk act who are flying high