Latest Channel 4 News:
Row over Malaysian state's coins
'Four shot at abandoned mine shaft'
Rain fails to stop Moscow wildfires
Cancer blow for identical twins
Need for Afghan progress 'signs'

Bank crisis: the ripple effect

By Cathy Newman, Faisal Islam

Updated on 09 October 2008

From councils to a children's hospice, close to £1bn of British money is at risk in the collapse of the Icelandic banking system.

The full extent is becoming clear today as charities and public bodies across the country admitted they'd made huge investments with banks that have now gone bust.

Charities have more than £25m at risk and they admit that's likely to be the tip of the iceberg. A hospice for terminally ill children near Winchester is a victim of the Icelandic banks crash to the tune of £6m.

The two country's prime ministers go into verbal battle with Iceland's accusing Britain of using anti-terror laws to bring down his countries' banks.

Gordon Brown said the Icelandic government's behaviour was "totally unacceptable" and he was considering legal action.

Tonight ministers said councils in severe difficulties would receive what they called "appropriate" assistance.

Is your council facing losses?

For a full list of local authorities and public bodies known to have taxpayers' money at risk in Icelandic banks, click here.

Offshore dimension

Another dimension to the Icelandic banks crisis emerged today - the status of British savers whose money is held at Kaupthing and Landsbankinn operations based in the Isle of Man and Guernsey.

Because these are offshore accounts, they're not covered by the British deposit compensation scheme. Our economics correspondent Faisal Islam explains.

Iceland - you heard it here first

Here's Faisal Islam's report from March where he first reported the potential concerns over Icesave.

Send this article by email

More on this story

Channel 4 is not responsible for the content of external websites.

Watch the Latest Channel 4 News

Watch Channel 4 News when you want

Latest Business & Money news

More News blogs

View RSS feed

Faisal Islam on Twitter


Anyone work in a business that has received government notice about their caps to non-EU employment? please get in touch...

Today at 11:16

Follow us

How to tweet

How and why to follow the Channel 4 News family on Twitter.

Most watched


Find out which reports and videos are getting people clicking online.

Channel 4 © 2010. Channel 4 is not responsible for the content of external websites.