Investments with Icelandic Banks

Dear Sir or Madam,

The Daily Telegraph recently reported:

"But The Daily Telegraph has established that some local government
managers did act on warnings from international credit ratings
agencies that the Icelandic banks were becoming less secure.
In February, Moody’s Investors Service cut its ratings on all the
major Icelandic banks. Landsbanki’s long-term rating was downgraded
“in light of the weaker credit environment.”
In May, Fitch, another agency, cut the ratings of Glitnir Bank and
Kaupthing Bank. Standard & Poors said it had only rated one
Icelandic bank, Glitnir, and had cut its rating from A- to BBB+ in
April.
Martin Winn, a spokesman for the agency said: “We have been
highlighting a growing risk about the Icelandic banking system
since February 2007. The rating BBB+ is very high risk for a
Western European bank.”
Those warnings were passed on to many local council financial
managers, prompting some to stop investing in Iceland.
More than 250 local authorities employ Sector Treasury Services to
act as financial advisers. Sector, which is owned by Capita, is
understood to have passed on the warnings about the Icelandic
banks’ prospects to clients earlier this year."

Extract from Daily Telegraph article, 9/10/08

Given this background information, I should like to know:
1 who is/are the council's financial adviser(s)?
2 which credit rating system(s) does the council use for guidance
on institutions to invest in?
2 who was responsible for investing £1,000,000 in Landsbanki?
3 why did the above (Daily Telegraph reported) warnings go
unheeded?
4 what measures have been put in place to ensure investment in low
credit-rated banks does not recur?
5 what sanction, if any, has been taken against the person
responsible for investment in low credit-rated bank(s)?
Yours faithfully,

Alice Bury