The banking crisis has hit Brent Council officials who have millions in banks in Iceland.
The council has £15 million tied up in Iceland bank accounts, which may be at risk following the financial crisis that hit the country this week.
A spokesperson from the council confirmed the money in Iceland was mainly investment funds.
She said: "All councils do this and all public sector bodies do this.
"They invest pension funds and this will not directly affect public services."
Various councils are seeking a meeting with the Government today to see if their assets are protected.
The Local Government Association does not expect there to be any significant problems for authorities as most have reserves and financial management should ensure services are not affected.