SFO launches investigation into Bank of England liquidity auctions

It is unclear whether the Bank's employees are suspected of involvement in any attempt to rig the auctions, used as emergency lending during the credit crisis

The Bank of England is facing an unprecedented criminal investigation by the Serious Fraud Office over emergency lending measures it took at the height of the credit crisis to inject cash into financial markets.

In late 2007 and early 2008, as the authorities struggled to prevent financial markets from freezing up, banks were invited to bid to borrow funds from the Bank of England in exchange for collateral in a series of so-called "auctions".