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Editor's blog 11th October 2008: first NHS trusts' Icelandic bank losses revealed

Sometimes, it isn't fun being right, but I did think the NHS was going to get hit by the Icelandic banking crisis.

We now know that two foundation trusts, the Christie cancer hospital in Manchester and Central and North-West London mental health trust, both banked reserves with Icelandic banks that are currently in administration.

The Christie admits to having £7.5 milllion - £1 million NHS money and £6.5 million charitable funds with Kaupthing Singer and Friedlander .

Accurate figures do not appear to be available for Central and North-West London's Icelandic exposure.

Bill Moyes will be pleased. Any other FTs with nasty surprises?

Meanwhile, Gordon Brown's public reassurance last week that the crisis would mean no cuts to health and education has calmed some nerves. For now.

Unfortunately, some unimpeachable sources have indicated that discussions are already under way on reopening all ministries' public spending plans for the 2009-10 financial year.

This is already a bloody expensive mess. It is going to get bloodier and more expensive.