North & East Ryde
By January 1989 the Commission obtained legal opinions from two Queen's Counsel . Although they did not agree, the commission preferred the opinion which made it ultra vires for councils to engage in interest rate swaps. Moreover, interest rates had increased from 8% to 15%. The auditor and the commission then went to court and had the contracts declared illegal (appeals all the way up to the House of Lords failed in Hazell v Hammersmith and Fulham LBC ); the five banks involved lost millions of pounds. Many other local authorities had been engaging in interest rate swaps in the 1980s.  This resulted in several cases in which the banks generally lost their claims for compound interest on debts to councils, finalised in Westdeutsche Landesbank Girozentrale v Islington London Borough Council .