The three reviews will focus on ensuring the Bank has the capability to respond to future crises and will pay close attention to the the collapse of Lehman Brothers in the US in September 2008, the recapitalisation of the major UK banks and the deep global recession.
Beginning immediately, the Bank has asked Ian Plenderleith, chairman of 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-CEO of JPMorgan Investment Bank, has been asked to guage 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 shortly after they’ve been presented to the Bank in October 2012.
But the reviews will only concentrate on areas where the Bank had sole responsibility and will not stray into the actions of the other Triparitite authorities – namely HM Treasury and the Financial Services Authority.
Any wider inquiry it says would need to consider the actions taken by all the authorities together and would therefore need to be initiated and conducted by an independent body.
Sir Mervyn King, governor of the Bank of England, says: “I welcome this set of reviews. Major changes to the operations of the Bank have already been made in the light of the financial crisis. These detailed, independent reviews will help to ensure that all the important lessons for the future have been learned.”