UK councils at risk in Icelandic bank failures

By James Daley, Personal Finance Editor and Nigel Morris Dozens of local authorities are facing the prospect of losing hundreds of millions of pounds after it was revealed that many had sizeable deposits with the failed Icelandic banks Landsbanki and Kaupthing. Alistair Darling, the Chancellor, announced yesterday that the Government would be guaranteeing all private savings in the Icelandic banks Kaupthing Edge, Icesave and Heritable Bank. But he stopped short of providing guarantees for local authorities and businesses which have money with the banks. One authority alone – Kent County Council – has £50m deposited in Landsbanki and its UK subsidiary Heritable, as well as Glitnir Bank. Alongside Kent, Westminster City Council confirmed it had £17m tied up in Icelandic accounts, while other exposed councils include Havering in... [read full story]