Page last updated at 20:22 GMT, Wednesday, 8 October 2008 21:22 UK

Authority has 5m in failed bank

The position of savers is unclear

Cornwall County Council has 5m invested in failed Icelandic bank Landsbanki.

Iceland took control of Landsbanki on Tuesday, but the government has not guaranteed compensation for savers.

The UK Government has frozen British assets of Landsbanki until the position of savers in the UK becomes clear.

Finance managers at the council are waiting to find out whether the cash will be covered by guarantees issued by the UK Government.

When we get money in... we try to make the most of it
Brian Higman, Cornwall County Council

Brian Higman, executive member for corporate support, said investing the funds it held across the financial markets was a prudent thing to do.

He said: "When we get money in, whether it's from council tax or grants, rather than leave it doing nothing, we try to make the most of it.

"That money is invested across a spread of many investments.

"If we had invested everything in Landsbanki, just imagine the position we would be in."

Q&A: The bank rescue and you
08 Oct 08 |  Business
Iceland's PM on Icesave accounts
08 Oct 08 |  Business
Iceland bank is in administration
07 Oct 08 |  Guernsey

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Sign in

BBC navigation

Copyright © 2018 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific