There were many warning articles in the press last February such as: www.timesonline.co.uk/tol/money/savings/article3340734.ece . The only surprise is that it took a further eight months for the Icelandic banks to collapse. Council Finance Directors are very much to blame.

Caroline Gurney, Chipping Sodbury,

Where do you think the capital for huge investment projects for things like new leisure centres comes from if not from savings like these?

The Government has cut central funding to Councils, asking for more in return and urged them to seek high-interest returns which are always risky

Andy, Reigate, UK

Although there has been a run on the banks, no need running to them because all the money is still in Iceland being kept in deep freeze and pristine conditions. By the way I am posting this tongue in cheek because I learned that our generous Gordon is making sure no British savers will lose out.

Wing, Poole, uk

The councils in their ivory towers thought that such things as investing only £35000 (as was) in any one institution was for the commoners, and didnt apply to them.

Noel Fleming, Paris, France

What I would like ot know is why all this cash was tucked away anyway?? Why are we constantly being squeezed for council tax if Kent Council had £50MILLION squirrelled away!?!

Seriously, we're being robbed blind here - is anyone going to start asking what all this money was doing NOT being spent??

John, Kent,

The taxpayers elected the Councils. The taxpayers elected this Goverment. Whilst the taxpayers are right to feel agrieved at how the current situation has occurred we have no-one to blame but ourselves.

Ian, Manchester, UK

This is an absolute disgrace. What are Kent County Council doing investing our hard earned tax payer's money in risky Icelandic banks most of which have excessive funds from dubious Russian sources?! Why not put it in British Banks or safer British Government bonds? This is a scandal. The CEO and Finance Director of KCC should be dismissed immediately and there should be a public enquiry into how our money is handled by the Council.

Russell, Sevenoaks, UK

don't see why us taxpayers should bail the councils out, treat them like private industry and cut staff, this will save on gold plated pensions and make them work for a living. From a fed up worker private sector

Danny, London, middlesex

I'm trying to understand , have we just given Iceland enough money to buy our high street companies and they are keeping the money and the companies? Have we seen billions paid to people who allowed this to happen? Are we really that stupid? [Yes to the last one]

Terry, Radstock, England

Then give us tax reductions and council tax reductions to compensate US for losing our money.

I knew about Icesave's problems in April. Anybody, ANYBODY who follows their investment does so.

If you don't follow your investment and it goes pear shaped, tough.

You want reward without risk. Crazy.

Laura Roberts, London, UK

So how do anti-terrorism laws apply here? Are we to believe Iceland is a hotbed of terrorists?

Ron, Milton Keynes, UK

Any Council Treasurer who invested money in a foreign bank should be sacked immediately. They should look for "safe haven" status first and then top returns. These people have gambled our money and lost. But, as usual, we, the taxpayer will continue to dig deep into our pockets!

Rodger Slape, London, UK

Why is it such a surprise that the Icelandic Banks have failed. People in the know had been warning about this for years, that the banks are so highly geared and the Icelandic govt. is incapable of bailing them out due to the scale of their economy. This is a controlled demoltion!

Geoff Boyer, Croydon, Surrey

I will refuse to pay any extra tax to make up for any losses unless the council pays me my losses on my investments!
Why should I be liable?

Pete, St Albans, England

I notice that the council that chose to invest the most in these Icelandic banks was Kent, evidently chasing yield with insufficient regard to managing credit risk. Is this the same Kent council that wants to start playing in the energy futures market ? How about learning to walk before running ?

Andrew , Hampton Hill, UK

I work in the Treasury Department of an authority that stands to lose £9.2 millions. We had a discussion 6 months ago about the risks of investing in aa Icelandic bank. We agreed the risk was marginally higher but decided to place money there. Seems like the authority was gambling to me.

Martin, Brentford,

So the taxpayer has to bail out the banking system. Now the money that taxpayers haver paid in taxes may be lost. This Government is incompatant. It is time that fat cats paid the price, not the taxpayer. Time to send a message to the financial industry and their greed and let the banks go under.

Martin, Bath, UK

Landsbanki is over 120 years old and had a top credit rating. No-one was saying avoid foreign banIks. If the Treasury boffins here and in the US weren't predicting this crisis nor the IMF, how can a Local Government Finance Officer have predicted what has eventuated. Hindsight is a wonderful thing!

Harold, Plymouth, UK

I was sickened to hear Edward Walsh of the Local Government Association say on Sky News that town halls were only obeying government instructions by risking ratepayers' cash in Icelandic banks. Anybody who could read knew it was a gamble. Heads should roll and there should be no town hall bailout.

Declan Cunningham, Cirencester, Gloucestershire

Where did all this spare council cash for investment come from? How could they manage to hold on to it for so long to gain from the investment, considering that councils are continually complaining of cash shortages?

So, they take it form us in council tax, lose it, and get it back in more tax.

Edward Bancroft, Colchester,

Councils should not be permitted to invest taxpayers money in non-uk institutions. Nor should they be permitted to invest in the stockmarket. It is not their money to speculate with.

David Smith, Stourbridge, UK

I am an ordinary saver and when I became aware that my Icesave money was only partly guaranteed by the UK Government and noting the worsening economic problems, I closed my account earlier this year. I am not a financial wizard. It was simply common sense!

Penny, Leighton Buzzard, UK

By the way who suffers Joe six pack and his hockey wife,Darling and the rest of te politicians MP's and FAT CAT's will weather this, and when the dust settle's the fat cats will be given a new fat cat job,and I won't get my refund I have claimed for from the banks for their overcharging.

Dotty, Birmingham, UK

it must be terrible to have money..............at the moment

D, sarajevo, Bosnina

Peter mandelson dose not seem bothered.........

Mo, Leed's, UK

The writing has been on the wall for Icelandic Banks since companies based there (population 300K!!!!) started buying up the UK high street. Any public treasurer who put monies in there is a fool or a knave, (or both). Sensible people assumed it was hot Russian money-a situation best avoided.

David Raynes, Bath, UK

What ... you mean that we have people in the UK stashing their "loadsa money" into hitherto inknown banks (no slight on High Street banks in the UK intended.) I feel it would be cheaper to pay off all this nation'smortgages and run the risk of deflation in a way opposite to which happened in Japan.

colin layhe, Brighton, east sussex

These idiotic councils who have invested (that's a laugh) locally thieved funds in such Ad Hoc ways are guilty of gross misconduct and should be charged with criminal neglect.
However this will not happen They will walk away with complete immunity as public servants always do plus a bonus.

Mike O Connor, Plymouth,

Interesting! Councils claim they need to cut services due to shortage of funds, yet have millions in bank accounts.

A rethink on council funding and council tax needed, perhaps?

AP, London,

Clearly the "due diligence" was not carried out by people who should know better. However the tax payer foots the bill. It is a disgrace.

Stu Peters, Nova Scotia,

Any losses by councils must come from the emergency funds and money put by and NOT the Tax Payer, if they put the money outside the UK then they are at fault. Councils should be open about where the money is put, I am still waiting for my money back for paying for street cleaning twice due to errors

Peter, Hastings, UK

The Chancellor seems to be giving my tax money away left right and centre.

Lee, Leeds,

Here is the question that is not being asked, what happens to the interest that this Tax payers money earns in these high interest accounts, where does it go and is it accounted for ? I would guess that £200 million, at lets say 6.36% would make around £625,140.23 a month ? interesting thought.

Matt , London,

Not to worry.
Made a bad "investment"? Increase Council Tax.
Big rise in fuel costs? Increase Council Tax.
Will no-one in this craven Government say "NO" to Councils?
Where do they all think WE get the money from?

Alan Hargreaves, Holywell, UK

Why is Darling so quick to jump to the aid of the Icesave depositors, when the collapse of that bank has nothing to do with UK regulators, yet refuses to reimburse the pensions millions lost by Equitable Life investors due to the complete inadequacy, according to the ombudsman, of the UK regulators?

Caroline O'Hare, Moscow,

its ok, most of the high street is owned by Iceland. If they dont pay just take the companies off their hands. Simple.

ian, Tokyo, Japan

It's no surprise that local councils will stand to lose millions - they're hardly the brightest bunch are they?

If they had the slightest inkling of how to invest, they wouldn't be working for local government.

William Tapley, London, UK

All of this fiasco...created by supposedly professional people, many with fancy degrees and supposed expertise. Absolute shower as Terry Thomas would have said.

Nigel, Lincoln,

Our councils are run by idiots.

Any fool with half a brain cell could see the writing on the wall for Iceland and to play with millions of council tax payers money and not review it regularly is plain criminal.

Heads should roll.

Andy, Doncaster,