October 30, 2008 12:00 AM

The Liberal Democrats today accused Alistair Darling of a cover-up over the collapse of the Icelandic banks, in which many British individuals and companies risk losing money.

Liberal Democrat Shadow Chancellor, Vince Cable questioned Alistair Darling in Parliament today about when the Treasury first knew about the Icelandic banks' problems, and whether he disregarded warnings about their precarious position.

Vince Cable has also written to Alistair Darling on the issue, but is yet to receive a reply.

Commenting, Jenny Willott, Welsh Liberal Democrat MP for Cardiff Central, said:

"People right across Wales who knowingly or unknowingly had money invested in one of the Iceland banks that have gone bust will be livid if it turns out there is a cover up going on.

"It seems Alistair Darling was fully aware that the Icelandic banks were heading into trouble long before the issue was publicly discussed.

"However, rather than act in advance to warn or protect investors before the crisis broke, it looks as thought the Government did absolutely nothing.

"Alistair Darling must admit what the Government knew and when."

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