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Wigan Council confirmed today that it has no money deposited with the troubled Icelandic bank, Landsbanki. Reports nationally suggest some 20 local authorities may have varying levels of deposits with the bank, which is the latest victim of the world wide financial crisis. David Smith, the council's executive director of business support services, said the authority had a policy of not investing with foreign banks since the collapse of BCCI (Bank of Credit and Commerce International) 17 years ago. He added: "Our experience with BCCI in the early 1990s led to the adoption of a more cautious investment policy. While this may not have achieved spectacular returns, by managing our cashflow we have still exceeded benchmark rates." Ironically, the council is set to receive a payment shortly which will mean the £2 million principal sum originally feared lost after the collapse of BCCI has now been repaid. |
