The credit crunch may well have hit closer to home after several of Lancashire's County Councils' maybe set to lose up to £10 million following the collapse of Icelandic bank Landsbanki.
The Lancashire Councils' including: Lancaster, Chorley, South Ribble and Burnley had all invested money in Landsbanki as a short-term measure before the credit crisis.
Lancashire County Council has the most, having invested £10 million with Landsbanki. Lancaster Council has £6 million, South Ribble £5 million, Chorley £2 million and Burnley Council £1 million all invested with the bank.
Lancashire County Councillor, Tony Martin claims it is not as bad as it first seems. " While this is a large amount of money, it represents less than 2% of the total amount of the county council's current investments". (http://news.bbc.co.uk/1/hi/england/lancashire/7661668.stm)
Mr. Martin, has also urged people to remain calm and not to panic. "We are doing everything possible to bring this issue to a positive conclusion". (http://news.bbc.co.uk/1/hi/england/lancashire/7661668.stm)
The question is will the Government have to step in and help the County Councils', and if so will the Government be able to guarantee them against any losses they may suffer? Also, is Gordon Brown doing enough as Primeminister during this time of Global repression? If you have any thoughts on the article or these questions please feel free to post them.
Two articles that may be useful in understanding this post or for further information are:
http://www.lep.co.uk/news/Council-could-lose-10m-tied.4576265.jp
http://news.bbc.co.uk/1/hi/england/lancashire/7661668.stm
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