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

Government rejects calls for Landsbanki Guernsey compensation

The UK government has rejected calls for assistance from British savers who lost millions in the collapse of Landsbanki Guernsey.

The Landsbanki Guernsey Depositors Action Group petitioned the UK government for support in its campaign to recover savings lost when the Guernsey branch of Icelandic bank Landsbanki collapsed in October 2008.

The mostly expatriate customers of Landsbanki Guernsey have only received 30p in the pound from the bank’s administrator and cannot claim compensation because the Crown Dependency did not have a depositors’ protection scheme in 2008.

‘The Landsbanki Guernsey Depositors Action Group calls on the UK Government to support British savers in Landsbanki Guernsey in seeking the full and prompt return of their savings,’ said Matthew Dorman of the action group, which has pushed the States of Guernsey for compensation.

The UK government said Landsbanki Guernsey was an Icelandic bank and was the responsibility of Guernsey’s financial regulator. The Treasury noted that many banks do not allow expatriates to open onshore accounts but stated this was purely a commercial decision.[Ends] 16-Nov-1-.