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  Sid, the Audit Commission themselves made a deposit within the last 3 months. Also it is becoming clear that a fair few IFA's conducted 'Due Diligance' as recently as September and as a result deposited large sums with these banks just weeks before they crashed. If the Audit Commission themselves get caught out like that it is more difficult to condemn the Councils. Given the Due Diligance requirements for IFA's as well I am even more convinced of that. The key question really is how much and what proportion of the assets were committed in this direction. Based on the KCC Pension money it is difficult to establish a case against them on that basis, I just dont know the position for their general fund though.
  
  I personally am fortunate, as I did not have a case in excess of the (original) depositor guarantee, far from it, so I have no client losses to concern myself with. I know now of one IFA who placed £400,000 with one of these banks a few weeks before, after their checks did not demonstrate a problem.

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