British Town Halls Lose Millions In Iceland Bank collapse

THE economic crisis is hitting people everywhere.British local governments decided to place their money and faith in Icelandic banks.Rates of interest proving too tempting for over 100 town halls who thought it looked a sure winner.They were wrong.

Their millions(reports say around a BILLION pounds) has been LOST in this crisis.

Questions:

Where do local governments get enough excess finanacial funds to invest in banks? Why are the citizens continuing being charged more and more for services by local town halls when many have plenty of money to invest in foreign banks?

How many people prior to this severe economic crunch(munch) even had any IDEA that their local government was investing large amount of public money in banks in Iceland?

The town halls are now screaming for the RETURN of their money,but these town hall officials took a risk, and now its all gone belly-up they not only want their money BACK but reports suggest they want the British government to possibly cover massive losses although they invested in a FOREIGN bank and NOT a British bank.

How can so much have gone incredibly wrong?

London was supposed to be the banking capital of Europe. A financial powerhouse with a world-wide international reputation but clearly is was for a long time a mirage of effiency rather than a solid business foundation.

The gaping holes in the rotten system finally being exposed along with the serious economic problems in the USA banking system across the Atlantic.

Here in Brazil the BOVESPA stock market has lost More than 22 per-cent of its value recently, and may like other markets continue to suffer losses.

The next few months are sure going to be difficult for many people

- John Blake

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Kent County Council And Haringey Borough Hit By Iceland

Anorak

Posted: 10th, October 2008 | In: Money, Twitterings | Comment | Follow the Comments on our RSS feed:RSS 2.0