The U.K. may be on the verge of an unprecedented experiment in public accountability.
The courts may soon be invited to consider the following question: Should government officials face prosecution if the actions they took to support the financial system during the credit crisis stink in hindsight?
In late 2007 and early 2008, with markets in a meltdown and the health of British banks under relentless scrutiny, the Bank of England belatedly pumped money into the financial system.
With money markets seized up and liquidity hard to find, banks were invited to trade assets for central bank cash.
At issue is whether officials nudged, steered or ordered -- take your pick -- financial firms to act in unison, ensuring that no single bank looked more desperate for assistance than its peers.
In other words, were these transactions rigged?
Sir Paul Tucker, the former deputy governor of the Bank of England, was interviewed this year as part of an investigation by the Serious Fraud Office, the Financial Times reportedthis week.
The department, which opened the probe in March 2015, will decide whether to pursue any charges by the end of the year.
