ICELAND has finally decided to return Haringey Council's frozen £37 m bank deposit in the Icelandic banks, with interest, in a
novel financial instrument.
In its wisdom, Haringey had put £19.8m of our cash with with Heritable, £15.2m Landsbanki and £2m with Glitnir.
The Heritable deposit was a little under the £20 m maximum recommended by government guidelines. The intention of the guideline was to limit exposure to the risk of any single bank's collapse. But with Haringey's deposits, the risk wasn't spread at all: they put
a further £15.2m with Landisbanki ...
which owned Heritable. The letter of the guidelines was met – but the spirit was not.
The news will come as a big relief to our hard-pressed council.
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Tags for Forum Posts: Finances, Haringey, Iceland, banks, deposit
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