LONDON, March 9 The Bank of England may appoint
a judge, academic or senior financial industry executive to run
an independent inquiry into its actions in relation to
allegations it allowed manipulation of the foreign exchange
market, the Sunday Telegraph reported.
The newspaper, citing unnamed sources, said the "heavyweight
figure" will examine the central bank's actions in relation to
the allegations and how it handled them.
The bank has already appointed the law firm Travers Smith to
prepare a report on the affair which will be made public.
However, the Sunday Telegraph said Travers Smith is on a
fact finding exercise rather than an inquiry.
The Bank of England has suspended an employee as part of an
internal probe into what Bank officials knew about alleged
manipulation of key currency rates by traders.
The BoE also released on Wednesday minutes of meetings
between its FX officials and chief dealers in London stretching
back over several years that showed concerns over possible
manipulation were raised as far back as 2006.
Regulators have said the alleged manipulation of the $5.3
trillion-a-day market - the world's largest financial market -
is as bad as the Libor interest rate rigging which has resulted
in banks shelling out $6 billion in fines and settlements.