UK councils, police caught up in Iceland turmoil

LONDON (AP) - British police departments, local authorities and charities are bracing for potentially painful losses as the financial maelstrom sucking Iceland toward insolvency draws in investors from across Britain.

An umbrella body for hundreds of district, town and county councils in England and Wales said some of its members were facing "severe short-term difficulties'' because their funds were tied up in failed Icelandic banks.