Bank sets up independent reviews of its crisis response

The Bank of England has set up three independent reviews into how effective its response to the financial crisis has been over the past five years.

The three reviews will focus on ensuring the Bank has the capability to respond to future crises and will pay close attention to the collapse of Lehman Brothers in the US in September 2008, the recapitalisation of the major UK banks and the global recession.

Beginning immediately, the Bank has asked Ian Plenderleith, chairman of investment company BH Macro, to review the Bank’s actions at the height of the financial crisis and its ability to provide emergency liquidity assistance.

Bill Winters, chief executive of Renshaw Bay and former co-chief executive officer of JPMorgan Investment Bank, has been asked to gauge whether the reforms introduced after the Treasury Committee’s report, The Run On The Rock, have worked.

And David Stockton, former director of research and statistics at the board of governors of the Federal Reserve System, has been asked to review the forecasting capability of the Monetary Policy Committee.

All three reports will be published soon after they have been presented to the Bank in October 2012. But they will only concentrate on areas where the Bank had sole responsibility and will not stray into the actions of the other tripartite authorities – namely HM Treasury and the Financial Services Authority.