Coun Graham Chapman, deputy leader of the city council, said local authorities have been granted depositor preference status by the administrators brought in to sort out the finances of the banks.
This will bump councils up the list of those who are owed money.”
The Local Government Association agrees with this view, but points out local authorities may only get a percentage back of the monies they deposited.
“As an example, the report notes that creditors from the failed bank BCCI have recovered 86.5% of their losses. We understand several councils have recovered their BCCI investments in full.”
Follow the link below to read more.
http://www.lga.gov.uk/lga/core/page.do?pageId=1739811#contents-4
