Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

TfL and councils millions locked in Icelandic bank collapse

Transport for London (TfL) and local authorities across England are facing losing hundreds of millions of pounds that they had invested with failed Icelandic banks.

The Local Government Association (LGA) claims that around 40 councils had savings deposits with Landsbanki - with authorities in London alone believed to have about £200M invested.

TfL meanwhile confirmed it had £40M invested with Icelandic bank Kaupthing Singer & Friedlander and was now working with the LGA to lobby the Treasury.

The LGA today asked Chancellor Alistair Darling to protect local authority deposits as he has done with individual UK savers.

"We are today seeking an assurance from the Chancellor that councils’ assets will be protected in the same way as personal assets,"said LGA chairman Margaret Eaton.

"Town halls invested in Landsbanki as a reputable bank with a solid credit rating. In the short term, these councils are confident that they will have sufficient funds to tide them over for a considerable period of time.

"While this may affect some councils financially, we do not expect it to have any impact on local services."

The London boroughs affected include Westminster, which had £17M split between Landsbanki and Heritable; Sutton — £5.5M; and Havering, which has investments totaling £12.5 M.

Outside the capital, Kent County Council said that it had £50M deposited in Icelandic banks — £15M with Glitnir Bank, £17M with Landsbanki and just over £18M in its British subsidiary, Heritable.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.