Exeter and Plymouth councils risk losing £millions in banking crisis
7:07pm Thursday 9th October 2008
SERVICES may be cut or council taxes raised if councils in Devon are unable to retrieve the £millions they have invested in failed Icelandic banks, it has emerged today.
A number of banks in the country have had their assets frozen leaving local authorities and other institutions across the country unable to get at their investments.
Exeter City Council says it has £5million invested in two Icelandic banks.
Plymouth Council has £13million in three Icelandic financial institutions houses while South Hams Council in South Devon has £1.25million in a UK-registered part of an Icelandic bank.
It is uncertain at this stage whether the government will bail out local councils as decisions will be made on a case by case basis.
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Exeter council has £5m at risk in banking crisis
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rhodie, Uplyme says...
11:14am Sun 12 Oct 08
Why did they deposit their cash in Icelandic banks?
Well because the interest rates were higher than those available in the UK stupid.
Why are higher interest rates obtainable?
Because there is added risk?
These investors could have invested their money in solid gold UK outlets and be guaranteed the return of their deposits. Their greed, whether they be councils, charities or private individuals, should not be the reason for them to be reimbursed by the government. Capitalism is based on “You pays your money and takes your choice” and you should not be expected to be bailed out otherwise lets tear up the rulebook.