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

Press Release 9-Dec-08



A number of Jersey based depositors from failed bank Landsbanki Guernsey, currently in administration, gathered for a meeting at the Magistrates Court in the Town Hall on Friday night. The meeting was conducted by Peter Wall, founding chairman of the local Jersey committee, together with Eleanor Monaghan and Brian Livesey. The meeting was also attended by Neil Dickens, chairman of the Guernsey arm of the Landsbanki Guernsey Depositors Action Group (LGDAG) and Press Secretary for the group at large. Mr Dickens had chaired a meeting of some 100 depositors with the bank in Guernsey the previous evening.

A number of the depositors voiced anger and frustration over the lack of apparent effort being made by the States of Guernsey. It was agreed that the States of Guernsey must be made accountable to the depositors and provide them with some assurance that financial solutions will be sought to ensure 100 per cent of their monies will be recoverable; and to this end full assistance provided to make up any shortfall arising from the realisation of the bank’s assets and or parental guarantee.

Concern was also raised about the involvement of the Guernsey Financial Services Commission (GFSC) as the banking regulator in the island. Again, Mr Dickens said that the group had been gathering facts in the run up to the collapse of the bank and as appropriate would be holding the GFSC up to further scrutiny. He was reminded at the meeting that Jersey’s regulatory financial body (JFSC) had rejected Landsbanki Guernsey on initial application and that further to, the States of Jersey had offered fiscal support to those in financial hardship on the island, affected by the fate of the bank. Thus far the States of Guernsey has not announced doing this for islanders affected within the Bailiwick

It became apparent by the end of the meeting that many, particularly older depositors face hardship this Christmas and in the longer term as a result of uncertainty about recovering the majority of their hard earned savings. Even though they have received thirty percent of their monies back, they are spending this money to get by where previously they would have lived off the interest on their intact deposits. An appeal was made for depositors to come forward with their personal stories which can be shared with the public in order that people can see that LGDAG depositors are not the rich fat cats that Alistair Darling referred to and are, in reality, hard working people who diligently saved money and are suffering from no fault of their own. Close to a half of all depositors in the bank reside in the Channel Islands.

A reminder was also given that individuals deposited – not invested – monies in a high street bank in Guernsey. Individuals did not invest in stocks and shares and indeed eighty percent of the monies currently at stake in the bank were placed in the UK and not in Iceland as many thought. Furthermore, the group was reminded that as consumers, individuals placed monies in a bank that not only provided a parental guarantee to ensure the safety of funds in the event of a shortfall, but that was in a properly regulated jurisdiction and that at the time was considered to be policed by a reputable regulator.

[ Click here for a PDF copy of the release ]