Rounding up the black sheep

The collapse of BCCI in 1991 provided much of the impetus for Basel II's home-host regulatory framework. But supervisors say that recognising the need for regulatory co-ordination is just a first step in a long journey.

When the Bank of Credit and Commerce International (BCCI) collapsed in 1991, it owed creditors more than £10 billion. The failure of the Bank of England (BoE) to police BCCI’s large UK-based operations has led to much finger-pointing in the regulatory community. It has also led to a giant court case – liquidator Deloitte Touche Tohmatsu is suing the BoE for "misfeasance, for letting BCCI operate despite knowing it was badly run". The court case, which kicked off in January and is expected to