Sid Pollitt
#1
I see that seven English councils have been accused of 'negligence' for putting money into Icelandic banks days before they went bust last October. Surprise, surprise Kent Councy Council is one of them. The Tory County Council put money in the banks and when there was a potential problem the council not only did not take their [our] money away but put more in. The reason they invested more was that they didnt open an email, and/ or the letter fell down the back of the sideboard.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
#2
Yes you are right. Curious, this criticism was made by the Audit Commission. Now, my memory fails me, exactly how much did the Audit Commission invest in Iceland?
Guest 660- Registered: 14 Mar 2008
- Posts: 3,205
#3
Serving on the Governance committee at the Council,it does suprise me that the Audit committee has taken that lineas well Barry,because they seemed a little red faced about the money they had put in.DDC money was actually tied in for a approx 1 year and some of it was due out in 1 month when the bank collapsed so we as a Council were unlucky.Mind you KCC were still putting money in when thier credit rating started to go down and one Council hadn't even opened the e mail sent to them advising them not to put money in.
If you knew what I know,we would both be in trouble!
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
#4
It is indeed puzzling JHG. I know of an IFA (not me) who did a 'Due Diligence' check on Kaupfinedge in September and obtained a reasonable A rating and yet they went to the wall right at the beginning of October.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
#5
it is a bit worrying when someone does all the checks and they still get stuffed.
there is a lot of wise after the event hysteria surrounding the icelandic banks.
much the same as BCCI all those years ago.
Ross Miller
- Location: London Road, Dover
- Registered: 17 Sep 2008
- Posts: 3,709
#6
Lets be accurate the audit committee's criticism was that investments were still being made after the ratings agencies had down graded Icelandic banks and after warnings had been issued.
The audit committee does openly admit to investing money in Icelandic banks however these investments were made over 9 months prior to the collapse.
"Dream as if you'll live forever. Live as if you'll die today." - James Dean
"Being deeply loved by someone gives you strength,
While loving someone deeply gives you courage" - Laozi
Guest 670- Registered: 23 Apr 2008
- Posts: 573
#7
Quite correct Ross. In fact the KCC deposited a further 8.3 million after they had been notified that the Icelandic Banks were in trouble.
The arrogance of the Leader of the KCC when he said on tv that it was a minor mistake caused by a member of staff that hadn't read his e-mails, I'd really like to know what he considers to be a major one.
