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| Version 4 | Version 5 |
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| Treasury in Iceland crisis talks | Treasury in Iceland crisis talks |
| (19 minutes later) | |
| A delegation of Treasury officials is going to Iceland to discuss its banking crisis and the impact on UK depositors. | A delegation of Treasury officials is going to Iceland to discuss its banking crisis and the impact on UK depositors. |
| The meetings follow sharp exchanges between Gordon Brown and his Icelandic counterpart Geir Haarde on the crisis. | The meetings follow sharp exchanges between Gordon Brown and his Icelandic counterpart Geir Haarde on the crisis. |
| UK officials want assurances that £1bn in funds invested by councils and other public bodies in Icelandic banks was safe and can be recovered quickly. | UK officials want assurances that £1bn in funds invested by councils and other public bodies in Icelandic banks was safe and can be recovered quickly. |
| They also want to find out how soon UK individuals with money in collapsed Icelandic banks will be repaid. | They also want to find out how soon UK individuals with money in collapsed Icelandic banks will be repaid. |
| But the BBC's Clive Myrie in Reykjavik said the turmoil in Iceland's economy meant its government was unlikely to be willing to give any assurances about the return of foreign deposits. | But the BBC's Clive Myrie in Reykjavik said the turmoil in Iceland's economy meant its government was unlikely to be willing to give any assurances about the return of foreign deposits. |
| 'Unacceptable' | 'Unacceptable' |
| Amid a financial crisis which has led to the nationalisation of three of its leading banks, Mr Brown strongly condemned Iceland's failure to guarantee British savers' deposits. | Amid a financial crisis which has led to the nationalisation of three of its leading banks, Mr Brown strongly condemned Iceland's failure to guarantee British savers' deposits. |
| Mr Brown said Iceland's actions were "effectively illegal" and "completely unacceptable". | Mr Brown said Iceland's actions were "effectively illegal" and "completely unacceptable". |
| UK Chancellor Alistair Darling has announced that all UK savers affected by the Icelandic bank crisis will be protected. | UK Chancellor Alistair Darling has announced that all UK savers affected by the Icelandic bank crisis will be protected. |
| But the Treasury wants to find out how soon customers of UK online bank IceSave can get hold of their money after its Icelandic parent Landsbanki collapsed. | But the Treasury wants to find out how soon customers of UK online bank IceSave can get hold of their money after its Icelandic parent Landsbanki collapsed. |
| Geir Haarde on the 'painful process' facing the banking industry | Geir Haarde on the 'painful process' facing the banking industry |
| Landsbanki was taken over by the Icelandic government and declared insolvent on Tuesday, leaving 300,000 UK customers of its subsidiary IceSave unable to access their accounts. | Landsbanki was taken over by the Icelandic government and declared insolvent on Tuesday, leaving 300,000 UK customers of its subsidiary IceSave unable to access their accounts. |
| The UK government froze all UK-held assets of Landsbanki after it collapsed and threatened to take similar action against other Icelandic firms in the UK because of concerns about the "detrimental" effect of Iceland's banking crisis on the UK economy. | |
| However, it has since partially lifted the Landsbanki freeze, exempting certain commercial activities from the order, and allowing business customers to access their accounts. | |
| But Mr Haarde responded angrily to the move, saying it was "not very pleasant" to learn that anti-terror laws were being used against its companies and also blamed Britain for the collapse of Iceland's biggest bank, Kaupthing. | |
| Council deposits | Council deposits |
| Ahead of Friday's meetings, the fate of funds deposited by British companies and public bodies in Icelandic banks remains unclear. | Ahead of Friday's meetings, the fate of funds deposited by British companies and public bodies in Icelandic banks remains unclear. |
| British firms are reported to have invested £12bn in Iceland's banks while the government has not offered to protect the investments of UK councils, police and transport authorities. | British firms are reported to have invested £12bn in Iceland's banks while the government has not offered to protect the investments of UK councils, police and transport authorities. |
| So far more than 100 local authorities in England, Wales and Scotland have revealed that they have deposits worth £842.5m in total. | So far more than 100 local authorities in England, Wales and Scotland have revealed that they have deposits worth £842.5m in total. |
| LARGEST CONFIRMED DEPOSITS Kent County Council, £50mNottingham City Council, £42m Transport for London, £40mNorfolk County Council, £32.5mDorset County Council, Hertfordshire County Council, £28mBarnet Council, £27mSomerset County Council, £25mHillingdon Council, £20mNeath Port Talbot Council, £20mWestminster City Council, £17mBrent Council, £15m Full list of councils affectedQ&A: Council funds at riskCouncils 'not reckless with cash' | LARGEST CONFIRMED DEPOSITS Kent County Council, £50mNottingham City Council, £42m Transport for London, £40mNorfolk County Council, £32.5mDorset County Council, Hertfordshire County Council, £28mBarnet Council, £27mSomerset County Council, £25mHillingdon Council, £20mNeath Port Talbot Council, £20mWestminster City Council, £17mBrent Council, £15m Full list of councils affectedQ&A: Council funds at riskCouncils 'not reckless with cash' |
| The Local Government Association wants the same protection for councils as for personal customers of IceSave and other failed banks. | The Local Government Association wants the same protection for councils as for personal customers of IceSave and other failed banks. |
| After a meeting with local government officials on Thursday, government ministers said they would deal with councils' financial needs on a case-by-case basis. | After a meeting with local government officials on Thursday, government ministers said they would deal with councils' financial needs on a case-by-case basis. |
| "We have agreed that we want to work together obviously to protect service levels but this is a complicated situation," Work and Pensions Secretary James Purnell said. | "We have agreed that we want to work together obviously to protect service levels but this is a complicated situation," Work and Pensions Secretary James Purnell said. |
| The financial exposure of public bodies rises to £946.8m when adding investments by police authorities and Transport for London. | The financial exposure of public bodies rises to £946.8m when adding investments by police authorities and Transport for London. |
| In addition, it is estimated that UK charities may have invested up to £120m in Iceland's banking system and are calling for support from the Treasury to alleviate any losses. | In addition, it is estimated that UK charities may have invested up to £120m in Iceland's banking system and are calling for support from the Treasury to alleviate any losses. |
| "They are smaller than local authorities and they don't have the same level of financial advice so there's an immediate issue which I think we need to take up with the Treasury," said Stuart Etherington, chief executive of the National Council of Voluntary Organisations. | "They are smaller than local authorities and they don't have the same level of financial advice so there's an immediate issue which I think we need to take up with the Treasury," said Stuart Etherington, chief executive of the National Council of Voluntary Organisations. |