Date: 16/10/08 01:36 pm (UTC)
What they said, plus I understand from what a council spokesman said on the radio that public bodies of these sorts are required to a) spread their investments around, b) select investment institutions from a recommended list, and some of the Icelandic banks were on this list, and c) optimise the return for money invested in this way.

The combination of the three means that a lot of government institutions (local councils, the police federation, etc...) would be likely to have some, but not all (or even most) of their money in there.

I understand that [livejournal.com profile] davywavy is correct that the Icelandic banks had been rated as Risky or Bloody Risky for months now, but if one has been handed an Approved List of Institutions from On High, I think one can be forgiven - to some extent at least - for assuming that someone else had done their homework.
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