Public Authority Review - December 2008
The ripples of the credit crunch continue to spread across the country. A number of local authorities who might have felt themselves relatively immune from the crisis within the banking sector found themselves suffering substantially with the failure of Icelandic Banks. These include East Midlands Authorities with a total exposure in excess of £50m or even dubious “hedge” funds. In these troubled times, what steps can local authorities reasonably take to minimise their exposure to the potential insolvency of third parties with whom they have legal relationships?
