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

Group Press Release 12-Jan-09


Frustrated and angry depositors – indeed the largest number to date - packed the Castel Douzaine Room late last week in their ongoing fight to recover 100% of their savings.

They gathered primarily to hear written responses from the Chief Minister Deputy Lyndon Trott, Finance Minister Deputy Parkinson and Chief Executive Mike Brown to questions the Landsbanki Guernsey Depositors Action Group (LGDAG) had put to the States at their meeting and also to hear in person what the States’ current view of the matter was, direct from the Chief Minister.

The unequivocal message received was that the States had decided that savers must rely solely on the work of the Joint Administrators and that the States had ‘no appetite’ to help local savers.

While the States continued to maintain that an ongoing dialogue was taking place both with HM Treasury and the Icelandic Government, exact details were not made available to savers.

It recently emerged that the Administrator had proposed to the States a so-called Phantom Depositors Protection Scheme which would see the majority of savers get their money back immediately with little or zero cost to the tax payer. Depositors’ representatives were told that it had been rejected by Deputies.

Following the meeting, one local depositor commented on how upset and ashamed they were that Guernsey was the only jurisdiction during the credit crisis not to have financially supported savers in the collapse of a local high street bank, especially considering that the proposals would have involved little or no tax payers’ money being sent.

Sentiments of grave disappointment, deflation and vocal anger were also strong amongst international savers with the bank who had read reports of the meeting online. The Action Group has received reports from them suggesting they may be planning co-ordinated demonstrations against Guernsey during the next few weeks.
Deep concern was also expressed on the Policy Council’s announcement that it had not taken a formal position with regard to last month’s Justice Committee Evidence session. At that hearing* Lord Bach representing the Ministry of Justice - responsible for administering the Constitutional obligation of the British Government to represent Guernsey from external threats – confirmed that the MOJ were continually speaking to HM Treasury regarding the collapse of Landsbanki Guernsey. However, Sir Alan Beith who headed up the session was sceptical of the extent to which proper representation was actually being made, not least by the MOJ. Scepticism at the depositors’ meeting was also rife in respect of the alleged ongoing dialogue that the Chief Minister had had with the Icelandic Finance Minister.

For more on the Justice Committee hearing on the Crown Dependencies *, go to:

For further information on LGDAG, please visit:

For interviews and comment from LGDAG, please contact Nick Carter at Mandate Communications on 020 3128 8109.

Chronology of Events:

6 October 2008: Landsbanki Guernsey’ parent, Landsbanki Islands hf ceases trading on Icelandic stock exchange:
Administrator called in to Landsbanki Guernsey; 1,600 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 ]