Tuesday, October 21, 2008

The OU has caught a cold

It is not only county and borough councils that have been caught out by the collapse of several Icelandic banks.  It now appears that a number of UK universities have also caught a cold, including the Open University.

The Open University said it had invested £6.5m in UK subsidiaries with the Icelandic banks.

"The funds at risk with these two banks, although significant, represent less than 4% of the university's cash holdings and 1.5% of the university's expenditure budget this year.

"There is no threat to the university's operations and staff and suppliers will be paid as normal," said vice-chancellor Professor Brenda Gourley.

This really begs the question "What was so special about these banks to entice so many high profile depositors?"

ref: BBC News

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