DEPOSITORS in a Guernsey bank that went bust are angry that a guarantee from its Icelandic parent now appears not to be worth the paper it was written on.

Earlier this week the winding up board for Landsbanki’s affairs in Iceland rejected depositors’ claims under the Guernsey bank’s parental guarantee. And the people who banked at Landsbanki Guernsey are now accusing the Guernsey Financial Services Commission of not doing its job properly.

A group representing the Jesey and Guernsey depositors said that the regulator allowed the bank to advertise a parental guarantee to potential customers that has not now been honoured. They also say that recent assurances given by Guernsey Chief Minister Lyndon Trott, that depositors would be treated fairly by the winding up board, were worthless.

The group is calling for an independent public inquiry to investigate what went wrong and to hold people to account.

About 100 Jersey depositors are still owed about £2 million after the bank failed in October 2008. Over a period of time, they have been repaid chunks of their savings and have so far got back about two thirds. 20-Feb-10.

http://www.thisisjersey.com/2010/02/20/depositors-seek-landsbanki-i