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Iceland asked for help before bank crash.
(From The Journal)
THE Government knew Icelandic banks were in trouble eight months before they crashed, it was claimed last night.
The Bank of England rejected a request for help from the cash-strapped system, which Northumberland County Council has pounds 23m invested in, Channel 4 news reported.
It was claimed that the Government knew about serious problems as early as March 2008 but chose not to alert savers and investors.
A series of requests for help were made by the Icelandic government and Central Bank, to both the UK Treasury and the Bank of England, reports said.
The news that Prime Minister Gordon Brown even discussed the banking problems with his Icelandic counterpart back in April was also screened.
Following the collapse of the Icelandic banks last ...
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