Wednesday, October 08, 2008


Word has reached my ears that 2 local authorities are in real trouble as they had banked there payroll with one of the Icelandic banks.

From what I am told Kent County Council and Haringey Borough are respectively £10 million and £6 million out of pocket.

Darling has said that individuals stuck in Icelandic banks are covered, but not public authorities. It appears they were chasing the higher interest rates.

The birdy suggests to me that there will be great difficulty paying staff.

This could all be rubbish and the FSA are saying they don't know, but I wonder how many governmental and para-governmental (Quangos etc) have similar problems.

Seems like the birdy rather underestimated the trouble. No matter youi read it hear first.


Tim said...

Where does HMG park its spare cash?

Anonymous said...

HMG - spare cash, this latest round of lifebelts is costing, in the round, £500bn, to pay for it all, should they have to, they will have to borrow 49.8% of the entire British GDP.

Alec Y said...

Hi Gawain welcome back.
There was an item on Westcountry News tonight that Cornwall County Council has a significant amount invested in Icesave. This is confirmed by The Western Morning News quoted below. Any bets that there will be more councils invested in this bank.

"County council chiefs are waiting to learn whether they have lost £5 million invested in an Icelandic bank which has been taken over by the island nation’s government".

IanPJ said...

or has he had it on ice in Landsbanki/Heritage Bank like the councils...

JO said...

North East Lincs Council too!

JO said...

NORTH LINCS Council as well.