info.LandsbankiAction.org.gg   30-Mar-2016: Liquidators' Update, see Deloitte site

Group Press Release 05-Jan-09

LANDSBANKI GUERNSEY DEPOSITORS HOLD SECOND FORMAL MEETING WITH DEPUTY TROTT
UNDER SHADOW OF UK JUSTICE COMMITTEE HEARING

The Landsbanki Guernsey Depositors Action Group (LGDAG) will meet for a second time with Chief Minister Trott at Sir Charles Frossard House, 2:00 pm on January 7th.

With seventy percent of their individual deposits still at stake, the LGDAG are poised to quiz the Chief Minister, Deputy Parkinson and the Chief Executive on a number of issues. Of key focus will be the Chief Minister’s reaction to December’s Justice Committee hearing in London, chaired by the Rt. Hon Sir Alan Beith where some questions ‘remained unanswered’ regarding the extent to which the Ministry of Justice were fulfilling the UK Government’s constitutional obligations in representing the affairs of Guernsey to the Icelandic government. Depositors in the bank - including hundreds of pensioners - want to know whether the Chief Minister feels he has the unequivocal backing of Her Majesty’s Government in their constitutional role to protect Guernsey and its institutions from external threats.
 

LANDSBANKI GUERNSEY DEPOSITORS HOLD SECOND FORMAL MEETING WITH DEPUTY TROTT
UNDER SHADOW OF UK JUSTICE COMMITTEE HEARING

The Landsbanki Guernsey Depositors Action Group (LGDAG) will meet for a second time with Chief Minister Trott at Sir Charles Frossard House, 2:00 pm on January 7th.

With seventy percent of their individual deposits still at stake, the LGDAG are poised to quiz the Chief Minister, Deputy Parkinson and the Chief Executive on a number of issues. Of key focus will be the Chief Minister’s reaction to December’s Justice Committee hearing in London, chaired by the Rt. Hon Sir Alan Beith where some questions ‘remained unanswered’ regarding the extent to which the Ministry of Justice were fulfilling the UK Government’s constitutional obligations in representing the affairs of Guernsey to the Icelandic government. Depositors in the bank - including hundreds of pensioners - want to know whether the Chief Minister feels he has the unequivocal backing of Her Majesty’s Government in their constitutional role to protect Guernsey and its institutions from external threats. 

Guernsey Chairman Neil Dickens, Deputy Chairman Gary Blanchford as well as Eric Graham and Eleanor Monaghan - Guernsey and Jersey group Secretaries respectively - will attend the meeting on behalf of the LGDAG. The group will be looking for assurances that the Chief Minister has established progress since their last meeting in his conversations with the UK and Icelandic Governments – in particular the Icelandic Finance Minister. Furthermore, representatives of the LGDAG will be looking for a status update regarding the IMF loan, now that depositors in UK-regulated Icesave have benefited from such funding and received their deposits back in full. They will also be looking to the Chief Minister for continuing regular updates as well as the implementation of support facilities in cases of hardship amongst Landsbanki Guernsey depositors. 

Said LGDAG Guernsey Chairman Neil Dickens, “The longer this takes, the more questions depositors have. Even though The Chief Minister has alluded to possible States help in the event of a shortfall, we want to find out what prospects The Chief Minister feels we have for the 100% return of depositors’ monies as well as how mindful he is of Guernsey’s international reputation in the event of anything less.”

The group will also ask questions regarding the actions of the GFSC. For example, why and in what circumstances did the GFSC allow the wide promotion of a Parental Guarantee for Landsbanki Guernsey, which so far has appeared to be little more than window dressing? Furthermore, why allow the bank to issue individual assurances to depositors that all was ‘safe and secure’- in some cases just hours before administration - if the official Regulatory Body otherwise knew of impending problems? The placement of funds and monitoring procedures in place to ensure adequate monies to cover deposits will also be questioned.

At present the administrators of Landsbanki Guernsey have paid only 30p in the £1 to savers, the vast majority of whom are pensioners and nearly all British citizens who have faced significant hardship and distress following the loss of their life savings. Account holders in Landsbanki Guernsey, deposited their monies in a high street bank in Guernsey and were given formal assurances that their money was safe. Three months on, they are still fighting for the return of their savings.

For more on the Justice Committee hearing on the Crown Dependencies, go to: http://www.publications.parliament.uk/pa/cm200809/cmselect/cmjust/67/67.pdf.

For further information on LGDAG, please visit: http://info.landsbankiaction.org.gg/

For interviews and comment from LGDAG, please contact Nick Carter at Mandate Communications on 020 3128 8109.
Notes to editors
Chronology of Events:
6 October 2008: Landsbanki Guernsey’ parent, Landsbanki Islands hf ceases trading on Icelandic stock exchange:
Administrator called in to Landsbanki Guernsey; 1600 individual depositors, the majority British, affected:
7 October 2008: Administrator called into Heritable Bank, Landsbanki sister company in the UK:
8th October 2008: Alastair Darling MP states in BBC interview that Icelandic Authorities have reneged on their obligations to pay depositors compensation; subsequent tape records dispute this assertion:
UK Treasury Dept Freezes £4B of Icelandic assets to protect UK savers under Anti terrorism legislation:
Treasury passes 182,000 UK retail savers accounts in Kaupthing and Heritable Banks with deposits of £3B to Holland’s ING bank:
13th October 2008: Bank of England offers £100M to Heritable Bank to assist UK savers:
16th October 2008: Landsbanki Guernsey Administrator awards partial depositors’ payback of 30% - cautions against expectations of full repayment:
22nd October 2008: UK treasury negotiates possibility of £3B loan to Iceland to assist UK based Icesave depositors:
27th October 2008: Repayment of UK Icesave deposits begins:
6th November 2008: Ian Pearson MP (lab) states that non resident non domiciled British Citizens can open UK bank account: LGDAG survey of 58 banks and building societies indicates this is incorrect:
19th November 2008 $2.1B IMF Bailout package approved after UK blocking removed on securing compensation package for UK domiciled Icesave depositors. UK Government could have met its constitutional responsibilities to its Crown Dependencies by ensuring this protection covered all savers:
24th November 2008 the Chancellor states in pre budget report that ‘...Isle of Man and Channel Islands. They attract banking customers with lower taxes – without contributing to the UK Exchequer.’ LGDAG research shows both Guernsey and the Isle of Man are signatories to the European Union Savings Directive 2005 (EUSD), which forces EU resident savers depositing money in any country other than the one in which they are resident to choose between forfeiting tax on interest earned, at the point of payment, or allowing notification by the offshore banks to tax authorities in their country of residence:
25th November 2008 HM treasury announces a cash supplement Requirement of £23.4B to refinance banking sector; including Icesave UK customers and Bradford and Bingley IOM:
10th December 2008 Justice Select Committee hearing to discuss Crown Dependencies – LGDAG presents extensive submission to request clarification of UK Government actions under its Constitutional Responsibilities and requests meeting with Ministers in Charge.
23rd December 2008 All Icesave depositors repaid. 

[ Click here for a PDF copy of the release ]