Lancashire County Council involved in Icelandic banking fiasco.

Oct 9 2008 By Tom Duffy

Tony Martin Teaser

It has been confirmed that Lancashire County Council are mired in the Icelandic banking fiasco.

Lancashire County Council deposited £10 million with Landisbanki earlier this year.

The bank has now been nationalised, and the Icelandic Government is reportedly refusing to honour depositors money.

Lancashire County Councillor Tony Martin, Cabinet member for Resources and Performance, said: "We have a £10m deposit with the Landisbanki bank which was due to be returned to us in December."

The Local Government Association is now lobbying Prime Minister Gordon Brown to guarantee all money lost in the now collapsed Icelandic banking system.

It has also been reported that up to 20 local authorities have invested large sums of money in
Iceland's banks.