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But there are no such blanket assurances for civic authorities and other institutions that lodged their money with Icelandic banks. The Local Government Association estimates that 108 local government councils have deposited $1.36 billion in Iceland. The councils' claims will be dealt with "case by case," said Hazel Blears, the...

Author: /time Magazine | Title: Iceland: Britain's Credit Crunch Scapegoat | 10/10/2008 | See Source »

That comes as something of a surprise to some local councils. There have been warnings since the beginning of the year that all was not well with Iceland's banks. As early as Jan. 30, credit-ratings agency Moody's Investors Service said it was placing on review for possible...

Author: /time Magazine | Title: Iceland: Britain's Credit Crunch Scapegoat | 10/10/2008 | See Source »

Kent County Council, controlled by the opposition Conservatives, tops the list of local government bodies looking to retrieve investments in Iceland: $85 million of its total budget of $4.42 billion is stuck in Icelandic accounts. Nick Chard, the council's cabinet member for finance, says he and his colleagues chose...

Author: /time Magazine | Title: Iceland: Britain's Credit Crunch Scapegoat | 10/10/2008 | See Source »

When the dust settles, the committee might want to revisit Ussher's words and maybe even question the wisdom of the rules governing local-council investments and how local councils interpret them. For the moment, Britons' ire is directed outward: at Iceland's hubris in allowing its banks to expand...

Author: /time Magazine | Title: Iceland: Britain's Credit Crunch Scapegoat | 10/10/2008 | See Source »

Meanwhile, there's evidence that the disconnect between traders and macroeconomic realities is matched by a divide over how market movers and their publics see things. After the French government pledged to guarantee all money in private savings funds, a poll published Friday by the daily Le Figaro showed 79...

Author: /time Magazine | Title: What Will Break the Worldwide Panic Reaction? | 10/10/2008 | See Source »

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