MANCHESTER's universities could lose £15m as the latest victims of the Icelandic bank crash.
Manchester Metropolitan had £10m savings invested in Heritable Bank, a UK subsidiary of the Icelandic Landsbanki.
And Manchester University confirmed they had £5m invested in the same bank.
Bosses of the universities are now working with managers of 10 other universities, the Higher Education Funding Council for England and the Financial Services Authority to negotiate the safe return of the cash.
A spokesman for Manchester Met said: "We have every confidence that the authorities will secure the unfreezing of our assets. We would like to emphasise the freezing of these investments will have no bearing on the functioning of the university."
The savings were to be used as part of an estates development plan Manchester University bosses say they invested the cash when it had a top credit rating.
They have an income of £590m a year.
A spokesman said he could not say when the money was invested, how long for and what the savings were earmarked for.
He said: "The University of Manchester has £5m deposits with Heritable Bank, an Icelandic-owned bank operated with a UK Banking Licence under the Financial Services Authority and was A-rated.
"We know we are one of at least 12 UK universities with investments in Icelandic-owned banks. We are working with those other universities and the government to secure those funds."
Bosses of the Christie cancer hospital are fighting to save £7.5m - most of it charity donations - which they invested in Kaupthing, Singer and Friedlander in May and July this year.
They are now moving all their £40m savings from banks to an account at the Treasury.
And Bolton council has £6m - 10 per cent of their deposits with the Landsbanki Group.
Cheshire county council invested £8.5m of their £200m with Heritable Bank. Its investments total £200m.
And Lancashire County Council confirmed it had invested £10m with Landsbanki, which included £1m from Lancashire Police Authority.
A total of 108 councils have deposited a combined total of almost £800 million in the stricken Icelandic institutions and the Icelandic government is refusing to honour its obligations to guarantee funds.
Tweet
Comments
Login or Register to comment
This is the ultimate in folly
People who run universities are supposed to be educated,obviously not in this case,and should they not get this cash back the losers will be the very people that universities are there for.
In the case of councils, the district auditors must ascertain what information was available with regard to those councils as to the solvency of the Iceland banks. If there is evidence of negligence, surcharges should be considered.
In the case of charities, the Charities Commission must investigate.
The public are entitled to full reports.
What I find amazing with the councils, universities and in some respects christies is that they cry poor at every opourtunity, we need you help, we need more government funding, yet between them have over £250m in the bank.
Is £6m in the bank the best place for it to be with regards christies or would it be better spent on cancer drugs for those people who are told they cannot have £1000 of drug treatment.
The councils have £200m+ in banks yet stick our council tax up by above inflation rates, ???
With the exception of christies I am glad these people have lost their money, lets hope heads roll aswel to send out the message that you cannot mismanage and then get bailed out and keep you job.