Wednesday 1 April 2009 
 
Dear Mr Smith 
 
Further to your FOI request dated 18 March in respect of the Council's 
investments in the collapsed Icelandic banks, set out below is the information 
you require. 
 
Norfolk County Council receives advice from Butlers and does not receive 
advice from Arlingclose. 
 
In respect of the advice received from Butlers, and analysis by Butlers of 
information from the respective credit rating agencies regarding the status of 
the Icelandic Banks, this was strictly followed by the Council.  
 
At the time all of the Council's investments were made in the Icelandic banks, 
those banks met the Council's strict investment criteria and were on the 
Council's approved counterparty list. 
 
However, because the investments which the Council held with the banks 
were 'term deposits' with maturity dates beyond their date of collapse, the 
Council was left with exposure amounting to £32.5m when the banks 
collapsed in early October. By way of example, the Council had an investment 
with Glitnir of £2.5m which was made on 22 January 2008 and was due to 
mature on 19 November 2008. 
 
So far as the investment decisions relating to the Icelandic banks are 
concerned, no investment was made in those banks after 20 March 2008. On 
the 1st April 2008, the banks were put on negative watch by the rating 
agencies and the banks were removed from the Council's approved 
counterparty list of institutions in which investments can be made.  
 
However, as noted above, at the date of the banking collapse, the Council 
held investments amounting to £32.5m which were due to mature after that 
date. 
 
In summary, the advice from Butlers was followed, but the maturity dates of 
the Council's investments meant that when the banks collapsed, the Council 
was left with investments 'at risk' amounting to £32.5m. 
 
The banks are now in administration; the Council has lodged its claim with the 
administrators; and every effort is being made to secure the return of the 
Council's investments along with those of the other 127 English local 
authorities affected in this way. 
FOI Response – 1 April 2009 
 
Page 1 of 2 

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You have the right of appeal through the Council's internal complaints 
procedure by setting out the grounds of your appeal in writing to the Freedom 
of Information Officer at:   
 
Freedom of Information & Data Protection Unit 
The Archive Centre 
Martineau Lane 
Norwich NR1 2DQ 
 
e-mail: [Norfolk County Council request email]
Telephone: 01603 222661 
 
If you are dissatisfied after pursuing the complaints procedure, you may apply 
to the Information Commissioner under Section 50 of the Act for a decision 
whether your request for information has been dealt with in accordance with 
the requirements of Part I of the Act.  Contact details as follows: 
 
Information Commissioner's Office 
Wycliffe House 
Water Lane 
Wilmslow 
Cheshire SK9 5AF 
Telephone 01625 545 700 
www.informationcommissioner.gov.uk
 
 
Yours sincerely 
 
Matthew Smith 
Freedom of Information and Data Protection Assistant 
 
FOI Response – 1 April 2009 
 
Page 2 of 2 

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