They are the forgotten victims of the credit crunch — the people whom the Government has quietly filed in a box marked “ignore, no help required”. But help is exactly what they need. Thousands of savers who trusted their money to banks in the Isle of Man and Guernsey are still waiting to find out if they have lost a big chunk of their life savings. . .

Westminster’s refusal to grant compensation is understandable. In a Parliament obsessed with spending cuts, bailing out offshore savers is never going to be a priority. However, that does not mean that these victims should be abandoned. Pressure should be applied to the Isle of Man and Guernsey authorities to ensure that as much of their savings are returned as possible, as quickly as possible. To the Isle of Man’s credit, it does seem to be trying, but so far payouts from the island’s compensation scheme have been painfully slow.

However, even faint praise cannot be extended to the Guernsey authorities. Worried about the damage to the island’s reputation, it has belatedly introduced a hopelessly inadequate compensation scheme, but it is not open to the Landsbanki victims.  26-Sep-09.

http://www.timesonline.co.uk/tol/money/article6849310.ece