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  Dave1- You mean the Audit Commission who also had money in the Icelandic banks.
  
  As I said people always come out into the daylight claiming an insight that was not there before.
  
  Peter - I disagree with you totally. By narrowing down the investment options as you suggest you are reducing returns and concentrating money into too few assets. Look at the levels of capital loss and measure that against the different returns - I am quite certain you will find taxpayers getting the best returns out of the more diversified portfolios. As you know well BBB rated debt remains 'investment grade'.
  
  By the way, not all was short term cash reserve - pension funds were part of it. BCCI is a case that illustrates the point in favour of KCC given the small proportion of funds in Iceland and contrary to what you said lessons were learnt (though they should not have been needed to).
  
  Alexander - evidence?
  
  GaryC - £19m will always be handy but I remain convinced that the diverified portfolio would have returned better than the capital loss over a few years ov the levels of total investment available.

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