Last Monday I achieved a small success.
It was the occasion of the Babergh and Mid Suffolk District Council’s Joint Audit & Standards Committee discussion on the Mid Year Report of Treasury Management 2014/2015.
Normally these meetings are a gentle breeze through the agenda merely noting what has happened and making the odd recommendation – all written and suggested by the officers.
Except that the recommendations included allowing deposits in banks and other organisations whose credit rating was BBB+. Additionally although recent regulatory changes approved by the European Parliament changed the eligibility of certain deposits (for compensation), public sector and financial organisations, remain ineligible for compensation. Anyone responsible for money management knows that in times of difficulty you chase security over yield – and I wasn’t going to let the investment profile move southwards.
Fortunately my view prevailed and the proposal to use BBB+ counterparties was withdrawn.
Which makes one ask, why it was suggested in the first place?