Colchester Council's Icelandic saga is finally over

Colchester Council's Icelandic saga is finally over

Colchester Council's Icelandic saga is finally over

First published in News
Last updated

A BATTLE by Colchester Council to reclaim £4 million lost in an Icelandic invested in 2008 is finally over.

The authority has sold its claims against the insolvent estate of LBI, also known as Landsbanki, following an auction involving third parties.

The deal means Colchester Council will not receive the full £4 million deposited with the bank in September 2008, weeks before it collapsed.

However Paul Smith, councillor responsible for resources, said more than half of the cash had already been repaid while there were no guarantees the council would have received the full amount.

Comments (11)

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2:31pm Wed 5 Feb 14

stevedawson says...

The picture actually represents the net amount we get back.fiscal failures of a minor council.sack the b*****ds.
The picture actually represents the net amount we get back.fiscal failures of a minor council.sack the b*****ds. stevedawson
  • Score: 2

2:35pm Wed 5 Feb 14

Colonel Kurtz says...

This bank was rated as dangerous before the collaspe. The clowns in the council have wasted our money again.
This bank was rated as dangerous before the collaspe. The clowns in the council have wasted our money again. Colonel Kurtz
  • Score: 3

2:57pm Wed 5 Feb 14

Say It As It Is OK? says...

Colonel Kurtz wrote:
This bank was rated as dangerous before the collaspe. The clowns in the council have wasted our money again.
And many of the clowns who approved using the Iclandic bank are still in office.
[quote][p][bold]Colonel Kurtz[/bold] wrote: This bank was rated as dangerous before the collaspe. The clowns in the council have wasted our money again.[/p][/quote]And many of the clowns who approved using the Iclandic bank are still in office. Say It As It Is OK?
  • Score: 2

2:57pm Wed 5 Feb 14

Bert_Stimpson says...

Amazing they can still find cash to squander on the firsts*ite parasites and the cultural quarter nonsense. Idiots.
Amazing they can still find cash to squander on the firsts*ite parasites and the cultural quarter nonsense. Idiots. Bert_Stimpson
  • Score: 2

3:01pm Wed 5 Feb 14

jim_bo says...

Time to send out the clowns, P45 style!

Perhaps Mr Smith can explain why they are still employed by the council? Or is it the case that there is no accountability in our local services?
Time to send out the clowns, P45 style! Perhaps Mr Smith can explain why they are still employed by the council? Or is it the case that there is no accountability in our local services? jim_bo
  • Score: 4

3:05pm Wed 5 Feb 14

hughie-s says...

What costs have been involved in getting OUR money back?
What costs have been involved in getting OUR money back? hughie-s
  • Score: -1

3:05pm Wed 5 Feb 14

Hamiltonandy says...

You cannot blame council staff. I remember the council report that "investment policy", decided by the councillors, was to invest only on the basis of credit ratings and to ignore press comments. The councillors read the same public reports, in the financial pages, warning about Icelandic banks as I did and still refused to change their policy.
.
You would have to be somewhat mentally challenged not to be suspicious, even before the negative comments, when the Icelandic banks offered market leading rates and Icelandic firms, with huge loans, bought up lots of UK firms.
.
I was at council meetings when the reports were briefly mentioned and at no time any of the sixty councillors ever expressed regret or need to apologise.
.
Not only has some of the original loan gone for good - so has the interest.
You cannot blame council staff. I remember the council report that "investment policy", decided by the councillors, was to invest only on the basis of credit ratings and to ignore press comments. The councillors read the same public reports, in the financial pages, warning about Icelandic banks as I did and still refused to change their policy. . You would have to be somewhat mentally challenged not to be suspicious, even before the negative comments, when the Icelandic banks offered market leading rates and Icelandic firms, with huge loans, bought up lots of UK firms. . I was at council meetings when the reports were briefly mentioned and at no time any of the sixty councillors ever expressed regret or need to apologise. . Not only has some of the original loan gone for good - so has the interest. Hamiltonandy
  • Score: -3

4:10pm Wed 5 Feb 14

Jess Jephcott says...

My understanding was that it was Mr Smith who was responsible for placing the money in Iceland.
My understanding was that it was Mr Smith who was responsible for placing the money in Iceland. Jess Jephcott
  • Score: -1

4:51pm Wed 5 Feb 14

jut1972 says...

Hamiltonandy wrote:
You cannot blame council staff. I remember the council report that "investment policy", decided by the councillors, was to invest only on the basis of credit ratings and to ignore press comments. The councillors read the same public reports, in the financial pages, warning about Icelandic banks as I did and still refused to change their policy.
.
You would have to be somewhat mentally challenged not to be suspicious, even before the negative comments, when the Icelandic banks offered market leading rates and Icelandic firms, with huge loans, bought up lots of UK firms.
.
I was at council meetings when the reports were briefly mentioned and at no time any of the sixty councillors ever expressed regret or need to apologise.
.
Not only has some of the original loan gone for good - so has the interest.
But the credit ratings were already crap weren't they that's the point. Negative press is one thing a poor rating from Moods et al is another.
[quote][p][bold]Hamiltonandy[/bold] wrote: You cannot blame council staff. I remember the council report that "investment policy", decided by the councillors, was to invest only on the basis of credit ratings and to ignore press comments. The councillors read the same public reports, in the financial pages, warning about Icelandic banks as I did and still refused to change their policy. . You would have to be somewhat mentally challenged not to be suspicious, even before the negative comments, when the Icelandic banks offered market leading rates and Icelandic firms, with huge loans, bought up lots of UK firms. . I was at council meetings when the reports were briefly mentioned and at no time any of the sixty councillors ever expressed regret or need to apologise. . Not only has some of the original loan gone for good - so has the interest.[/p][/quote]But the credit ratings were already crap weren't they that's the point. Negative press is one thing a poor rating from Moods et al is another. jut1972
  • Score: 0

7:19pm Wed 5 Feb 14

jim_bo says...

The report says that the debts have been sold to Third parties.

They would only buy them if there was a return on them, why isn't CBC chasing that return or have they sold them so low anything is a bonus?

If Jess's comment is correct perhaps he should offer to resign over the whole affair. As taxpayer I would accept that!
The report says that the debts have been sold to Third parties. They would only buy them if there was a return on them, why isn't CBC chasing that return or have they sold them so low anything is a bonus? If Jess's comment is correct perhaps he should offer to resign over the whole affair. As taxpayer I would accept that! jim_bo
  • Score: -1

8:49pm Wed 5 Feb 14

jut1972 says...

jim_bo wrote:
The report says that the debts have been sold to Third parties.

They would only buy them if there was a return on them, why isn't CBC chasing that return or have they sold them so low anything is a bonus?

If Jess's comment is correct perhaps he should offer to resign over the whole affair. As taxpayer I would accept that!
Risk management. The buying party are taking a gamble. CBC are cutting their losses.
[quote][p][bold]jim_bo[/bold] wrote: The report says that the debts have been sold to Third parties. They would only buy them if there was a return on them, why isn't CBC chasing that return or have they sold them so low anything is a bonus? If Jess's comment is correct perhaps he should offer to resign over the whole affair. As taxpayer I would accept that![/p][/quote]Risk management. The buying party are taking a gamble. CBC are cutting their losses. jut1972
  • Score: 2

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