BOE’s Bailey Asked to Clarify Some Evidence to Lawmaker Inquiry

Bank of England Governor Andrew Bailey has been asked to clarify comments he made to U.K. lawmakers after the author of an investigation into the mini-bond investment scandal challenged his statements.

Mel Stride, head of the parliament’s Treasury Committee, wrote to Bailey on March 8 seeking answers to what happened during discussions between Bailey and Elizabeth Gloster, a former judge who compiled a 494-page report into the Financial Conduct Authority’s oversight of London Capital & Finance Plc, which collapsed while Bailey was in charge of the regulator.

During a February committee hearing Bailey repeatedly expressed anger at how he was portrayed in Gloster’s report and the debate his lawyer had with the former judge over the definition of “culpability” and “responsibility” and how blame should be ascribed.

Gloster wrote to Stride’s committee after the hearing and disagreed with some of Bailey’s comments. Stride now wants the central bank governor to clarify some of his statements including “the difference between culpability and responsibility,” and what he prioritized when he took over the regulator, according to a statement Tuesday.

The collapse of London Capital & Finance cost retail investors more than $300 million. Gloster’s report detailed a sluggish investigative culture at the FCA with inadequate training of staff to root out fraud.

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