Wokingham Borough Council has millions of pounds invested in Icelandic banks that have stopped depositors withdrawing their cash, it has emerged.

The council admitted this morning it had £5 million invested in two Icelandic banks, Heritable and Landsbanki.

The authority is one of 20 local authorities understood to have money tied up in those two banks, both of which have stopped depositors taking their money out.

Landsbanki is Iceland's second largest bank.

The Icelandic government has taken the bank under its control in a bid to avoid financial crisis.

- More in next week’s Wokingham Times.

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