Iceland,the warning signs for councils charities etc.

Richard_Cocks

Warning signs or no, had all the charities and councils tried to withdraw their money it would have only caused a sooner default!

Simply put, Icesave/Landsbanki did NOT have the money to pay all depositors their deposits back. (This is true of all banks) No amount of foresight could prevent someone losing money.

Optimist

chopperharris wrote: »

Did the councils not learn after bcci.

did the ukgovtplc not take measures for this to not happen again back then.

perhaps the only way forward for charities and councils and the like is to have legislation there for them in the form of only having nsi saving accounts in the future.True its not the best interest rates but at least its garunteed 100 percent.

sometimes the best rate just isnt the best option.

wont be long now til the council tax increases to cover the councils losses.But why , or how, did they have money to spare in the first place if they have been pleading poverty with cutting services?

Well the councils were following government rules to spread the risk and get the highest return possible so they put them in fixed term deposits with various banks

In July Kitty Ussher who was then Economic secretary to the treasury (now promoted to minister in the DWP) told a commons committee that the government was perfectly happy that ALL deposits in Icelandic backs would be covered in the unlikely event of failure ...Boom Boom

chopperharris

Optimist wrote: »

Well the councils were following government rules to spread the risk and get the highest return possible so they put them in fixed term deposits with various banks

In July Kitty Ussher who was then Economic secretary to the treasury (now promoted to minister in the DWP) told a commons committee that the government was perfectly happy that ALL deposits in Icelandic backs would be covered in the unlikely event of failure ...Boom Boom

well then the buck stops there.

brightonman123

would be interesting to see where out councils DO have ££ invested.. any ideas where to look?

LesU

brightonman123 wrote: »

would be interesting to see where out councils DO have ££ invested.. any ideas where to look?

Almost everywhere. Kent Council may have mislaid £50 million in Icesave, but they, along with all other local authorities, are forced by the Government auditors to spread the risk very wide and only with trustworthy companies. Kent has investments in over 30 different financial institutions. Their operating budget is in the order of £2 billion per annum, so there is a fair bit of cash to be moved around or invested throughout the year.