FoI request: Just what did the BoE know BEFORE the financial collapse that it kept SECRET from the Treasury AND FSA?
Earlier today we wrote a note about the startling revelation that the BoE’s deputy Governor, John Gieve, had written an internal paper circulated at the BoE about concerns the central bank had about the health of the UK banks. Writing a paper is nothing new, but keeping it secret from government AND the FSA certainly is – just what did it say?
But it wasn’t the histrionics by Brown et-al that caught our eye in this article – after-all, wasn’t it in the best interest of the banks to say the system would collapse unless TRILLIONS of taxpayer pounds were used to prop the system up? Brown fell for it hook, line and sinker – proving that he is a total pigmy when it comes to any matters economic (**cough** gold sales **cough). It was more the following couple of paragraphs that jumped out at us:
“Subsequent to the financial crisis, we were told privately, although it’s never been confirmed publicly, that John Gieve — the old Treasury head of spending who became Deputy Governor of the Bank of England — had written an internal paper before the collapse of Northern Rock raising concerns about the balance sheets of a number of major banks.
If that’s true, the Bank never shared the paper with Treasury ministers or, as far as I know, the Financial Services Authority.”
So, BEFORE the banking crisis got going in the UK, it sounds like the people at the BoE KNEW the UK banks were in trouble, serous trouble – but crucially didn’t share this information with the Treasury OR the FSA - just think of all those depositors put at risk by the BoE for failing to paint a full and truthful picture of the banking system.
And given that the UK Government ended up essentially underwriting most of the major UK banks, you would think that, at the very least, the BoE would have called an urgent meeting to discuss the findings of the paper with BOTH the Treasury and the FSA.
If true it is a shocking example of how little the BoE feels it has to talk with Government or the main UK finical regulator – it really is just a law unto itself, a very dangerous thing when they are the ones in control of the printing presses. And proves just how little the BoE cares for taxpayers and depositors at UK banks – it would rather keep material information secret in a bid to preserve the status-quo and stick ALL the risk on the backs of taxpayers – without the taxpayers being fully informed of all the ‘facts’.
So just what was in this ‘paper’ circulated for Bank of England eyes only – did it say that a finical collapse was imminent, did it say how bad it would be, and what recommendation did it make? One thing is for sure, it was so sensitive the BoE thought it best to NOT tell the Treasury of even the FSA.
And we ended with:
We feel another FOI request coming on… And being that it is now seven years after the events in question, the Treasury and/or the BoE will be VERY hard pressed to cry ‘economic sensitive information’ to prevent its release.
And that is exactly what we’ve done. Moments ago we filed a FoI request with the Treasury, the FSA and the Bank of England:
We will keep you posted on its progress. However, we’re not holding our breath, the last time we asked the Treasury for some information it was so sensitive it would “prejudice the UK economy” if released, so it wasn’t – must’ve been ‘juicy’ then.
We hope things are different this time around.
- Did the Bank of England write an internal paper raising concerns about UK bank’s balance sheets BEFORE the collapse of Northern rock – and didn’t share it with the Treasury or the FSA?
- FoI UPDATE: Treasury extends its deadline on releasing over-ruling the BoE information… again
- Freedom of Information request made to the Treasury on its authority to ‘overrule’ the BoE
- FoI Update: Treasury refuses to release information on BoE independence because Ministers might become “less innovative in policy formulation”
- FoI UPDATE: The Treasury admits it has information on over-ruling the BoE – says releasing the information may ‘prejudice the UK economy’
Link to this article: : http://www.goldmadesimplenews.com/gold/foi-request-just-what-did-the-boe-know-before-the-financial-collapse-that-it-kept-secret-from-the-treasury-and-fsa-11790/