What did NPT and Caerphilly know and when did they know it?

Some councils were not deceived by triple-A ratings. They were no doubt aware that the reputation of credit rating agencies had already been compromised.

Brighton council said it had withdrawn deposits from Icelandic banks.

A spokesperson for the council said it suspended transactions with Kaupthing Singer and Friedlander about a year ago over concerns about Iceland's banks expanding too rapidly.

Cllr Aled Roberts of Wrexham told "Dragon's Eye" tonight that the council had taken advice and taken their money out of Iceland in time.

Questions must be asked of any finance director who placed funds in Iceland after February of this year, when "Your Money" issued a warning and certainly after March, when Standard & Poor got round to publicising their doubts.