Trust funds at risk in banks crisis

Two NHS foundation trusts face potential losses of £2 million after the collapse of Iceland's banking sector.

The trusts, which have not been named, had cash deposits with Icelandic banks.

A spokesman for Monitor, the regulator overseeing the 107 NHS foundation trusts in England, said services would be unaffected.

Foundation trusts enjoy a degree of independence from central Government control due to their good financial standing.

The spokesman said: "We have required NHS foundation trusts to report to us (on an exceptions basis) whether they believe any of their cash deposits to be at risk as a consequence of the current banking situation.

"Two (out of 107) NHS foundation trusts have confirmed deposits with Icelandic banks, totalling £2 million.

"They have also confirmed that in neither case will any potential loss give rise to concerns as their ability to continue to provide services as required under their terms of authorisation."

More than 100 councils, as well as police forces, fire services and transport authorities, have deposits running into millions of pounds each in the crisis-hit institutions.

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