The Audit Commission has downgraded the ratings of five local authorities for the sin of putting some of their money in Iceland.
As you may remember from this blog, the commission itself was forced to admit - at about the same time - that it had been keeping millions in the country once described (long before the bank failures) as “a giant hedge fund”.
Jim Pickard and Alex Barker, FT Westminster correspondents, share the latest news and gossip from the UK's political scene.
Alex Barker has been an FT political correspondent since July 2007. He joined the paper in 2005, after working in current affairs television.
Jim Pickard joined the FT's lobby team in January 2008, having been a regional correspondent, assistant UK news editor and property correspondent.
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