London  - Local authority leaders in Britain were seeking urgent talks with the government Thursday after it emerged that up to 20 councils and London's transport operators have investments of hundreds of millions of pounds with Iceland-based banks.

The local councils, including some in Central London districts, want the government to protect their investments in the same way as it has pledged to guarantee savers' deposits.

It emerged Thursday that Transport for London, the local government body responsible for London's transport system, had deposits of 40 million pounds (69.6 million dollars) in Kaupthing Singer & Friedlander Ltd, whose parent company was nationalized by the government in Reykjavik Thursday.

Kent Council, in southern Britain, has invested 50 million pounds in British branches of Icelandic banks and Westminster Council in the heart of London - including its government quarters - has placed 17 million pounds in Icelandic institutions.

The government has pledged full compensation to up to 300,000 British savers holding deposits in Iceland internet bank Icesave. (dpa)