116 councils invested £858m in Icelandic banks, says LGA

Local government body calls for inquiry into how credit ratings agencies continued to give Icelandic banks high ratings days before they collapsed The number of councils which invested money in Icelandic banks has grown to over 116, depositing a total of £858m, it emerged today. The figure was revealed by the Local Government Association (LGA) as it called for a government inquiry into how credit ratings agencies continued to give Icelandic banks high ratings days before they collapsed. The LGA, which represents councils in England and Wales, said the banks and their UK subsidiaries continued to receive high ratings until September 30. Margaret Eaton, chairman of the LGA, said: "This isn't the time for a blame game. This is an unprecedented situation, the extent of which could not have been foreseen. "However, at the... [read full story]