Opposition parties in Westminster signalled they would not accept reassurances from either ministers or the LGA. The Conservatives criticised ministers today for failing to establish the full exposure that the Icelandic banking crisis had had on local public bodies. Shadow communities secretary, Eric Pickles, pointed to the lack of updated guidance. ‘The only guidance issued to councils on investing in overseas banks was given by John Prescott in 2004. Financial adviser, Arlingclose, advised its 45 local authority clients to avoid Iceland back in 2006. There is a difference between light-touch regulation and neglect,' he said. Liberal Democrat communities spokesman, Julia Goldsworthy, said: ‘While councils have a right to question whether some of the advice given by credit ratings agencies may have been flawed, those councils which made poor judgments cannot put all the blame at their doors.'
