Reigate & Banstead Council failed investments top £20m.
March 28, 2009 5:50 PM
Dunfirmline B.S. failed
On top of £15.5m in Icelandic banks, Conservative controlled Reigate and Banstead Borough Council had invested another £5m in the Scottish Dunfirmline Building Society, which has also failed, according to BBC News reports today.
Scotland's largest building society is to be put on the market by the government after it effectively collapsed, BBC Scotland has learned.
It was hoped the Dunfermline could continue with a government bailout of between £60m to £100m.
However, the regulators have decided it is no longer viable, with a £26m loss expected to be announced next week.
The Scottish Government said it was "deeply disappointed" that it could not continue as a going concern.
The tri-partite regulators - the Bank of England, the Financial Services Authority (FSA) and the UK Government - have forced the sale of the Dunfermline, after it emerged a multi-million pound loss was expected and further problems were likely to emerge.
On hearing the news, Reigate Liberal Democrat PPC Jane Kulka commented, "This is yet another example of Tory controlled Reigate & Banstead Councils poor financial management. It is indicative of of their failure to recognise the enormity of the risks associated with gambling Council Tax payers money".
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