Bank officials to take the stand as BCCI case resumes

[emad]

The Independent
By Julia Kollewe, Banking Correspondent
27 September 2004


The Bank of England, accused of "misfeasance" in its regulation of the fraud-ridden Bank of Credit and Commerce International (BCCI), will today resume its defence in the £1bn High Court case with witnesses, including the former governor Lord George, preparing to take the witness stand in the months ahead.

After a record six-month opening this year by the counsel for Deloitte Touche Tohmatsu, which is representing about 6,500 UK depositors in BCCI, the Bank of England's counsel, Nicholas Stadlen QC, will today continue his defence. He began the Bank's case in mid-July before the court broke for a summer recess.

Mr Stadlen said then that allegations that 22 Bank of England officials acted dishonestly were "fundamentally implausible". The liquidators of BCCI argue the central bank acted recklessly by giving BCCI the go-ahead in 1980 to operate in Britain and failing to supervise it properly before revoking its licence in 1991.

Mr Stadlen opened his defence in July saying "after six months the empire strikes back", and told the court that liquidators must prove the central bank officials deliberately acted dishonestly and abused their power. Mr Stadlen said only one successful case of misfeasance had been reported in 300 years.
More:
http://news.independent.co.uk/business/news/story.jsp?story=566100

As previously on DU Gen discussion:
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=104x2411891

[Demoiselle]

1. Remember, Kerry lead the fight against BCCI in this country....

He had the imagination and insight, as early as 1987, to go after these guys because they were laundering drug money and FUNDING TERRORISTS! He had to withstand enormous pressure from official and Establishment Washington for three years before Eliot Spitzer and the Feds took up the cause and shut BCCI down.
This is an excellent talking point for those confronted with the nonsense that Kerry has no credentials in the "war on terror."

[emad]

2. The BCCI Affair: Kerry/Hank Brown Dec '92 report to CFR Senate

A Report to the Committee on Foreign Relations
United States Senate
by
Senator John Kerry and Senator Hank Brown
December 1992
102d Congress 2d Session Senate Print 102-140

See:
http://www.fas.org/irp/congress/1992_rpt/bcci/

[blm]

6. Robert Morgenthau. Spitzer would have been pretty young still.

.

[molly]

3. This is great timing - I hope it makes headlines here

and all the major networks.

[gandalf]

4. Make the headlines? I doubt it.

Did the fact that J. Bush is top manager of Riggs Bank made the headlines?

[rman]

5. didn't make headlines when the case started,

wy would it now?

It's only the biggest court case ever.