RECOVERING Landsbanki depositors’ money is down to the administrators, not the States, according to the chief minister. . .

Landsbanki Guernsey savers have accused the Guernsey Financial Services Commission of allowing the bank to advertise a worthless parental guarantee.

It follows the Icelandic Winding-up Board rejecting savers’ claims because Landsbanki Guernsey did not have a guarantee from its Icelandic parent company to back its deposits. . .

The GFSC does require subsidiary banks to have letters of comfort in place but it has always recognised that these are not legally binding and made that point plainly in the same consultation paper. . .

‘It is clearly incorrect for the LGDAG to “question the validity” of the chief minister’s recent assurances that Landsbanki Guernsey depositors would be treated fairly by the Winding-Up Board, as claimed by the LGDAG. I regrettably cannot do anything other than to express my disappointment that the LGDAG has sought to personalise the matter and in doing so misrepresent our position.’

Guernsey savers have so far had a little over two thirds of their money back.  22-Feb-10.

http://www.thisisguernsey.com/2010/02/22/landsbanki-cash-recovery-for-administrators-not-the-states/