Auditing The Auditors.

The news that the Audit Commission, of all bodies, might £10 million in Icelandic banks is pretty droll. It was already known that many councils have millions in Icelandic banks, which begs the question:

how supposedly cash strapped government institutions, local authorities and quangoes have millions of pounds that they were keen to stuff into wobbly Icelandic banks in the first place.

I have no answer to that or to the other big question, given that Iceland's economy is primarily based on fish, how exactly did they think that their banks had the kind of security to guarantee large deposits?