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London Mayor Boris Johnson
Boris Johnson has called the government's £500bn bail-out package for Britain's banks 'staggering'. Photograph: Luke MacGregor/Reuters
Boris Johnson has called the government's £500bn bail-out package for Britain's banks 'staggering'. Photograph: Luke MacGregor/Reuters

TfL had £40m investment in failed Icelandic bank

This article is more than 15 years old
Boris Johnson vows to recoup lost transport cash and urges government not to cut spending in capital after bank bail-out

The mayor of London, Boris Johnson, today confirmed that Transport for London had invested £40m in a failed Icelandic bank and vowed to seek "redress" for the lost deposits.

"That is a question for us and, together with the rest of London's authorities, we are looking to see what redress we can find," he told BBC Radio 4's Today programme.

TfL is believed to have a £40m deposit in the Icelandic bank Kaupthing, which has been placed in administration.

Johnson also warned cuts to transport investment would "cripple" the capital and urged the government to continue investing despite what he called the "staggering" £500bn rescue package for the banking system.

"I just want to stress that as the government thinks about its priorities now, and thinks about the way out of the recession we may or may not get into, it is absolutely vital that we continue with the investment in transport infrastructure in London.

"If we want to get ourselves out of this mess, that means long-term investment in improving our city and making it even more attractive as a place to come and work and invest."

He warned that failing to upgrade the London Underground or shelving Crossrail, the rail network linking east and west London, would be detrimental to the capital. "It is vital that people in government understand that," he said.

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