Hundreds of millions of pounds of Essex taxpayers’ money will be invested in banks previously considered too risky.Not the headline – they are ’forced’ into this.
Essex County Council has agreed to invest its reserves in some of the nation’s financial institutions which are currently on a “negative watch” list.The rules are too restrictive? Well, change the rules, then.
Negative watch means a company’s credit rating is under review and was therefore suspended from the list of acceptable places to invest, under the council’s treasury management strategy.
However, this strategy has now been changed and the head of finance can now invest in companies on this danger list, ratified by the full council earlier this week.
That’s politics for you.