My employer has lost £27 million

[mark&sue]

I can't believe it. I work for a local authority who has just lost £27 million in the collapse of the icelandic banking system. I know that there are nearly 100 local authorities in the same boat but it is really scarey.

We received an e:mail assuring us we will be paid! I am also a resident of the borough and can't believe that taxpayers money has disappeared just like that.

Gordon Brown is said to be trying to help out but the news seems to get worse each day.

What is coming next.


Susan

 

[natalielongstaff]

its just mad, wish i had that much to lose !!

 

[PoppyAnna]

I have to say, I'm amazed any sane Finance Director made a decision to invest Council Tax money in an Icelandic Bank during a Global credit crunch, surely this money should have been moved back to a reliable institution when banks started colapsing right left and centre. I bet they wouldn't invest their own savings in an Icelandic bank! Perhaps I'm just naive.....
I have to say, I've had enough of this whole business now

Are you at liberty to say which LB you work for/are a resident of?

 

[mark&sue]

There is a list of Local Authority loses on BBC News 24 interactive. We are pretty high up but I noticed Nottingham Council had lost £43 million, Kent £50 million, Westminster £17 million. Apparently the treasurary encouraged Local Authorites to invest in these banks.

Transport for London too has lost even more than us.

Where has all this money gone???

Our council was looking to cut loads of jobs before all of this even started. What now. High unemployment means more people defaulting on their loans which in turn causes the banks to lend less money. less credit means the wheels of economy coming to a standstill. In turn this could effect any employer, who rely on loans to fund their cashflows etc. With these latest events even employers who have money could have it invested in a bank which may not be safe.


Susan

 

[jackieleanne]

The credit crunch seems to be affecting everywhere I have been to the trafford centre twice this week as I live very close and have been looking for presents and it has been empty both times. I mean last time was the quietest I have probably ever seen it and I go a lot.

 

[mandymouse]

OMG, this is shocking

 

[natalielongstaff]

Barnet £27m
:: Bassettlaw District Council £8m
:: Bolton Council £6m
:: Braintree District Council £5m
:: Breckland District Council £12m
:: Brent £15m
:: Bridgnorth District Council £1m
:: Brighton and Hove City Council said it suspended transactions
:: Bristol City £8m
:: Bromley £5m
:: Buckinghamshire has £5m
:: Burnley Borough Council £1m
:: Caaerphilly County Borough Council £15m
:: Canterbury City Council £6m
:: Carmarthenshire County Council £4m
:: Ceredigion County Council £5.5m
:: Cheltenham Borough Council £11m
:: Cherwell District Council £6.5m
:: Cheshire County Council £8.5m
:: Chorley Borough Council £2m
:: Cornwall County Council £5m
:: Cotswold District Council £2m
:: Daventry District Council £8m
:: Derwentside District Council £7m
:: Dorset County Council £28.1m
:: East Ayrshire £3-5m
:: East Lindsey District Council £4m
:: East Staffordshire Borough Council £1m
:: Exeter City Council £5m
:: Gateshead £4.5m
:: Gloucester City Council £2m
:: Haringey
:: Havering £12.5m
:: Hertfordshire County Council £17m
:: Hillingdon Council £20m
:: Ipswich Borough Council £2m
:: Kent £50m
:: Kinross £1m
:: Kirklees Council £1m
:: Lancashire County Council £10m
:: Lancaster City Council £6m
:: Lewes District Council in East Sussex £1m
:: Monmouthshire County Council £1.2m
:: Moray Council £2m
:: North Ayrshire £15m
:: North Ayrshire Council
:: North East Lincolnshire £2.5m
:: North Lincolnshire £5.5m
:: North Somerset Council £3m
:: Northumberland Council £23m
:: Nottingham City Council £41.6m
:: Nuneaton and Bedworth Borough Council £3m
:: Oxfordshire councils £28.5m
:: Perth and Kinross Council £1m
:: Plymouth City Council £13m
:: Powys County Council £4m
:: Redcar and Cleveland £6m
:: Restormel Borough Council £4m
:: Rhondda Cynon Taf County Borough Council£3m
:: Rushmoor Borough Council £2m
:: Solihull Metropolitan Borough Council £3m
:: Somerset County Council £25m
:: South Hams District Council £1.25m
:: South Lanarkshire £7.5m
:: South Ribble Council
:: Stroud District Council £3m
:: Surrey County Council £20m
:: Sutton £5.5m
:: Tewkesbury Borough Council £1m
:: Transport for London £40m
:: Wakefield Council £9m
:: West Lindsey £7m
:: West Sussex County Council £12.9m
:: Westminster City Council £17m
:: Wiltshire County Council £8m
:: Winchester City Council £1m
:: Wirral Council £2m
:: Wychavon District Council £1.5m
:: Wycombe District Council £2.5m

Police authorities also stand to lose nearly £100 million from investments in Icelandic banks. Here is a full list of the police authorities affected and the total of their investments:

:: Dorset £7 million
:: Dyfed-Powys £2 million
:: Gwent £1 million
:: Hertfordshire £3 million
:: Humberside £5.75 million
:: Kent £11.1 million
:: Lancashire £0.67 million
:: Metropolitan £30 million
:: Northumbria £3.5 million
:: South Wales £7 million
:: Surrey £1.5 million
:: Sussex £6.8 million
:: Thames Valley £5 million
:: West Midlands £5.4 million
:: West Yorkshire £6 million

Im astounded our council isn't listed, they are usually very good at making bad choices !

 

[jackieleanne]

My council isn't up there which im suprised about to. However bf's council Burnley is I wonder if the rates will go up I plan on moving there next year.

 

[jjk]

shocking

 

[gemmybear83]

My employer is on that list - the finance department was going mad today.

We were all not impressed - we had grant cheques to send out that would not be signed off today, we were told it was all a "concidence".

Concidence or not it is just bad management, fortunetly my employer has not lost as much as some of the others.

 

[Graeme]

I have to say, I'm amazed any sane Finance Director made a decision to invest Council Tax money in an Icelandic Bank during a Global credit crunch, surely this money should have been moved back to a reliable institution when banks started colapsing right left and centre. I bet they wouldn't invest their own savings in an Icelandic bank! Perhaps I'm just naive.....

Have to agree with that. Especially public bodies like those.

 

[Claire L]

Doh! Sussex Police are on there as well

Claire

 

[Graeme]

Doh! Sussex Police are on there as well

Claire

Well the only reason Cleveland Police aren't is that we never have any money to save

 

[Claire L]

Well the only reason Cleveland Police aren't is that we never have any money to save

Lol!

I hope its not my pension money they lost!

Claire

 

[PoppyAnna]

Lol!

I hope its not my pension money they lost!

Claire

I'm afraid they were saying on the radio this evening that this could impact council pensions and future council projects

The only London council that responded to BBC Radio London's request for comments or and interview was from Richmond and the representative gave a very interesting, intelligent and informed interview and telephone Q&A. He said that most council money (I didn't even realise that they had this much money to invest ) will be spread across 10-15 British banks and he explained the process from Richmond's POV.
It was also quoted that Westminster's "loss" only represents 5% of money they have invested
So the next time your council says it can't fix your road or can't afford to collect your rubbish more than once a fortnight, should you believe them?

 

[irongirlof12]

most councils invest vast sums of money and seek independent advice to do so. they do not put all their eggs in one basket.That would be foolish, the portfolio is spread across accounts and funds. Until last week this bank had triple A rating with a good return for investment so it was a wise choice.

It's just a sign of the times. If it gets any worse we will be bartering with cows and sheep!

 

[Lizzybear]

Liverpool isn't on there but my parents' local council, Cheshire, is (though not as huge a sum as others!) I didn't realise so many were involved though, quite scary!