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Icelandic banks collapse
10/10/2008
Finance Secretary John Swinney has today contacted all local authorities with deposits in Icelandic banks.
Mr Swinney said:
"Following my letter to the Treasury yesterday, I have personally contacted all Scottish councils that are affected by the uncertainty surrounding Icelandic banks. As financial regulation is a reserved matter, I want reassurance from the UK Government that all deposits by local authorities in all banks, based both in the UK and elsewhere, are afforded the same protection as the safeguards the UK Government put in place in relation to certain Icelandic banks and accounts earlier this week.
"The Scottish Government stands ready to work co-operatively with Scottish councils whose investments in Icelandic banks may be in doubt, and I will take forward discussions with affected Scottish local authorities directly with the Treasury to ensure that council resources and council taxpayers' interests are protected at this time of uncertainty."