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.
The Guardian doesn’t really get economics, does it?
4 minutes ago