Calls in Michael Foot's interim review for a probe into offshore jurisdictions' compensation schemes have been backed by an action group, which argues current 'safety nets' are inadequate.

The Landsbanki Guernsey Depositors Action Group (LGDAG) says some current schemes are not designed to cope with "catastrophic" failure. . .

. . . LGDAG adds, if the Government had not bailed out RBS and other banks with subsidiaries offshore, Guernsey alone would have seen four failures and therefore its parent bank guarantees would have been useless. . .

. . . Foot says only "some" of the nine British Crown Dependencies and Overseas Territories have compensation schemes in place. But it points to Bermuda, Gibraltar and the Isle of Man as examples of centres that have made moves to shore up their capabilities in the event of a major failure.  International Investment - 24-Apr-09.

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