30-Mar-2016: Liquidators' Update, see Deloitte site

Banks' threat to withdraw cash (+ video subject to regional rights)

Guernsey's States have confirmed banks threatened to pull money out of the island if the depositors' compensation scheme was not changed.

The scheme was set up after the collapse of Landsbanki Guernsey.

It offers one hundred million pounds of compensation and is paid for by a levy on all local banks.

Twenty million pounds of that money has to be provided up front but the banks wanted that removed. They said they would move deposits to another jurisdiction such as Jersey which does not have that requirement. [Ends]  18-Oct-10.