Councils 'ignored Iceland risks'

Old_Slaphead

robin_banks wrote: »

20% in 'higher risk' investments seems reasonable in a (hate to use the word) portfolio.

Agreed, but not for taxpayers money to set aside for carehomes, schools, infrastructure projects, road maintenance etc.

Next thing we'll have local councillors taking bags of money down to the local casino.

Guy_Montag

Old_Slaphead wrote: »

Agreed, but not for taxpayers money to set aside for carehomes, schools, infrastructure projects, road maintenance etc.

Next thing we'll have local councillors taking bags of money down to the local casino.

I say, steady on, it's a bit of a leap to go from an almost safe bank - Landsbanki to throwing money away on roulette.

30th September 2008:

Rating Action: Landsbanki Islands hf
*snip*
The following ratings were placed on review for possible downgrade:
Bank Deposits: A2

Oct 8 - Moody's (nyse: MCO - news - people ) Investors Service has today downgraded the bank financial strength rating (BFSR) of Landsbanki Islands hf ('Landsbanki') to E from C-, its long-term deposit ratings to Caa1 from A2 and its senior unsecured ratings to Caa2 from A2.

Wow, talk about behind the curve, dropping the rating from A2 the day after the bank stops issuing money.

Bear in mind that by propping up three? four? UK banks, we have yet to see whether the UK as a whole can weather the storm.