A month before the start of the financial crisis, the Bank of England was apparently unaware of the impending danger, new documents reveal.
In a unique insight of its workings, the Bank has published minutes of top-secret meetings of the so-called Court that took place between 2007 and 2009.
The minutes show that the Bank did identify liquidity as a “central concern” in July 2007.
However no action was taken as a result.
The documents show that the Bank also used a series of code names for banks that were in trouble.
Royal Bank of Scotland (RBS) was known as “Phoenix”, and Lloyds TSB as “Lark”.
Following publication, Andrew Tyrie MP, the chairman of the Treasury Select Committee, was highly critical of some of the Court’s non-executive directors.
He said they had failed to challenge senior executive members, like the then governor, Mervyn King, whom some accuse of failing to prioritise financial stability.
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