The Serious Fraud Office (SFO) is investigating the Bank of England over funds provided to banks during the 2007/8 financial crisis through so-called “liquidity auctions,” it confirmed yesterday.

The auctions saw cash-strapped banks being invited to “bid” for funding from the Bank of England in exchange for collateral, in an effort to keeping markets moving at the height of the financial crisis.

It is unclear whether bank employees are suspected of involvement in any attempt to rig the auctions, which were used prior to the launch of quantitative easing in 2009.