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Dozens of local councils risk losing hundreds of millions of pounds of taxpayers’ money held in Iceland’s stricken banks. Here's who invested what.
Local Authority I Amount invested in Icelandic banks in millions of pounds
Kent County £50m
Haringey £37m
Dorset County £28m
Hertfordshire £28m
Barnet £27m
Somerset County Council £25m
Northumberland County £23m
Hillingdon £20m
Surrey County £20m
Westminster City £17m
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Invoking anti-terror legislation to seize the assets of private companies and banks which were not in default goes beyond a declaration of war - it is an act of war against a fellow NATO member. It is also a spectacularly cowardly act against a country of 300.000 caught up in a worldwide crisis.
Magnus Asbjornsson, Dubai, UAE
My local Council (Neath Port Talbot) has 20 million tied up.Before this news broke, they were urging council tenants to vote to transfer tenancy to a housing association because they could not afford to carry out improvements asked for by the Welsh Assembly Government.
What a joke!
Paul Johnson, Port Talbot, UK
The complexity of local government means that large volumes of cash are flowing in and out at any one time - it is unlikely these funds were 'long term investments' (with the exception of any pension fund investments). Instead, these accounts were places to deposit cash short term at high interest.
don craigton, wakefield, u.k.
Unfortunately the comments here demonstrate a complete igonrance of the role of local government in handling large inflows and outflows of finance from a variety of sources - central government, businesses (business rates), benefit payments, rent revenues, council tax payers etc.
don craigton, wakefield, u.k.
I think things have become far too complicated. In the old days a council or charity would have put money in a local bank.
Is this widespread incompetence something new or do we just find out so much more these days?
People need to be held to account.
Robert, Manchester, UK
Newsflash! The local councils have been robbing us blind for years and stashing the money. Accountable? Get real. At least Dick Turpin had the decency to wear a mask.
Richie, Louth, England
As a prudent pensioner I decided against Northern Rock as risky, and would not consider overseas as difficult to get access to funds in a crisis. Why has my local council been so blatantly stupid?
Suzanne, Taunton.,
I find myself asking the same question as many others seem to be asking... "how have these councils amassed such large funds when each year we have to pay more council tax because the spending has gone up"? And who authorised these funds to be invested in anything other that guaranteed capital bonds?
SHB, Isle of Wight,
Apparently the local authorities want huge amounts of taxpayers' money to replace the taxpayers' money they've compromised through their flawed investments. That gives us a measure of the financial acumen of the people involved. Why are they permitted to invest in anything but gilts?
Jacques Francis, Westcott, UK
Yesterday the Kent Council bloke said on the news that his £50m was, I think, 2% of his total capital. Now then. Am I going mad or why have Local Authorities got such a HUGE amount of money? And what are they doing with it - apart from putting it in banks that the average person would think were a risk even for 30k? Who's getting rich?
Sarah, Leeds, UK
while councils are paying over 12000.pound a month for asylum seekers !!!! to live in rented houses why should we pay anthing back, make the people who invested this money lose there jobs, and send all immigrants back to where they belong, if they can not support themselves,
liz, london,
I can understand short term investments because for some reason we pay council tax over the first 10 months of the year, but why have these councils tied up cash over long periods?
Too much income? They could just reduce council tax.
As for using a terrorist measure here that is just wrong.
bill, Knaresborough,
Idiots! There were warning signs about Iceland going bust over a year ago. Council bosses should be sacked for being incompetent. I wonder what the salaries of these councilors are? £100,000 a year I imagine, will they take a pay cut for their stupidity? Doubt it
richard, Brighton, England
I have only one question: why aren't UK councils investing in UK banks? Why is our money promoting banks of another country? Is it right that UK tax payers are indirectly propping up another country's economy?
Outrageous. If they ask for more money to cover this shortfall I will refuse to pay.
IK, London,
right now on the icesave web site,:
"Landsbanki Islands hf. is Authorised by Fjármálaeftirlitið (The Financial Supervisory Authority, Iceland) and the UK Financial Services Authority and is Regulated by the Financial Services Authority for the conduct of UK business:" High risk?
Iain MacKay, London, UK
simple, take away from the councils, and any other organisation that wants the government (i.e us) to pay them the money they have lost. It is interesting that local governments insist on 'freedom' to do their own thing (i.e. paying the CEO & their mates large salaries), but then cry for help
h.villosa, Bedford,
-- anita, cambridge, uk --
There are several east anglian ones - Greta Yarmouth and Ipswich and Breckland were ones that jumped out. There are a lot of rural councils represented so I suspect plenty of Tories were there.. Looks like an even political and geographic spread to me. But not my area.
Neil Murphy, Cromer,
The money are most likely invested in UK companies. Landsbanki funded a lot of property development in the UK among other things. Implying that the money is in Iceland is cheap polititcal tactics by the UK PM. Using the Terrorist act to freeze assest of a company regulated by the FSA, who failed?
Birgir, Newbury, Berkshire
I am incensed! Who introduced this bank to ALL these councils? Why was this the only bank where
so many authorities entrusted their funds? I'm sure someone or some body received a nice fat 'introductory' fee from the bank for this..... they need to refund it, fast!!
Ishik, Romford, UK
Nonsense, Michael, of course Council's have deposit limits in place. The large numbers involved in some cases simply shows how much money in total many council's hold to fund their activities. The only councils seriously affected by this in the short term will be those with no reserves.
greg, London,
Norm, these councils lent to IceSave and IceSave can't afford to pay it back. Nobody "needs to answer". When you put money in a bank they don't keep it in a brown envelope for you under the counter. That's not how it works. Sometimes things go wrong, so we have a compensation scheme for individuals.
Alex, London,
I would like to know why the councils have so much of OUR money on deposit and yet need to put up the tax bill each year. We pay our bills each month so it is not as though they get a massive upfront payment from us to last them the year and put it on deposit. How much have we been overcharged.
Philip, Huntingdon, UK
Important issue is not how much they had invested but what proportion of their total investments they had with Icelandic Banks. A basic concept of financial management is putting in place exposure limits with individual counterparties - I suspect this may been overlooked by a number of councils!
Michael, London, UK
Interesting. No East Anglia councils that I can see (bar Herts if you count it) - if you were to overlay this with a political map I wonder what it would look like. Certainly EA is almost all Tory.
anita, cambridge, uk
So where is all of this money? There must be records of where it went, who has it, how did they get it. It can't have just dissappeared into thin air. Someone needs to answer.
Norm, Newcastle, UK
Now we know where council tax bills will increase the most next year!
ian, edinburgh, scotland