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

Other Sources

This page contains brief summaries of and links to media reports from the source Other Sources.

Netherlands threatens Iceland's EU bid over lost savings

To put pressure on Iceland to meet agreements about compensation for Dutch savers who lost money in the Icesave bankruptcy, Dutch foreign minister Maxime Verhagen told his Icelandic counterpart that he could block its bid to join the European Union.

Verhagen called Ossur Skarphédisson on Tuesday evening to talk about the stalemate in the Icesave repayment. The Icelandic parliament, the Althing, has postponed a decision on the reimbursement agreement made by the government for Dutch and British victims of the Icesave debacle. A total of 128,000 Dutch savers had some 1.7 billion euros in accounts in this web-based subsidiary of the Landsbanki bank, which was nationalised by the Icelandic government in October 2008.. .

In a reaction, Skarphédisson called Verhagen's remarks "an internal Dutch political issue". Iceland's finance minister Steingrímur Sigfússon said there can be no connection between the Icesave agreement and admission to the European Union.  NRC Handelsblad Netherlands website - 09-Jul-09.


Iceland to Recapitalize Banks

Iceland plans to recapitalize its formerly massive banking system with around $2 billion, and will offer creditors equity stakes in two of its three major banks, the country's finance ministry said Monday.

The ministry said in a statement that it plans to re-capitalize the country's principal three banks, formerly known as Kauthing, Glitnir and Landsbanki, with around 270 billion Icelandic kronur ($2.13 billion). The banks failed in a matter of days last autumn as global financial turmoil swelled, throwing the country into economic crisis.  Wall Street Journal website - 20-Jul-09.

Jersey legislators back bank compensation scheme

Jersey has moved a step closer to introducing a depositors’ compensation scheme after its legislators voted ‘in principal’ for the measure. . .

The likely introduction of the scheme follows the collapse last year of Icelandic banks Kaupthing and Landsbanki, which respectively had subsidiaries in the Isle of Man and Guernsey holding many millions of pounds.

While the Isle of Man had a depositor compensation scheme, Guernsey did not, meaning savers in Landsbanki Guernsey have no guaranteed right of receiving any of their money back.

Guernsey has since implemented a scheme, though it is not retrospective and therefore does not cover Landsbanki depositors.   International Adviser website - 17-Jul-09.

Jersey Depositor Compensation Scheme Approved

The States Assembly has approved the principle that a Depositor Compensation Scheme (DCS) will be brought into law in Jersey.

The House voted unanimously for the principle of a permanent, standalone DCS that will be activated in the unlikely event that a Jersey-registered bank failed. The aim of the scheme is to provide depositors with compensation quickly, minimising hardship by enabling depositors to carry on with their everyday economic activities.

It will provide full protection for private individuals up to a maximum of £50,000 per person, per Jersey banking group, whether or not the depositor is resident in Jersey.

The details of the legislation will now be scrutinised, and will be brought back to the House later this year for a full debate.  Jersey Finance website, Economic Development Department - Depositor Compensation Scheme - 16-Jul-09.


Iceland mulls EU membership talks

Parliament set to approve application and membership talks could progress quickly. . .

A spokesperson said that the government intended to submit the formal application at or before a meeting of EU foreign ministers in Brussels on 27 July. Ambassadors of the EU's 27 member states are now likely to consider the question next Thursday (23 July). . .

A bigger challenge in the short term could be an agreement to reimburse Dutch and British account holders with Icesave, the offshore division of Landsbanki, which collapsed last October. . .

Under the agreement, the UK and the Netherlands are to provide a loan of around 45% of Iceland's gross domestic product to finance the reimbursement, placing a heavy burden on Iceland's public purse. Europeanvoice website - 16-Jul-09.

See Also: Iceland's Urgent Bid to Join the E.U. Time Magazine website - 17-Jul-09.


Special prosecutor interrogates ex Landsbanki CEO

The special prosecutor has taken the former Landsbanki CEO Sigurjón Árnason and Magnús Ármann into interrogation. Magnús Ármann is one of the most famous front men in Iceland these days. Front man in the sense that he was technically bankrupt when some of the biggest players in the economic collapse used his name to transfer money and buy companies to hide their identity.

According to our sources from inside the banking sector,this is general terms called inside trading or a fake business deal, and Magnús Ármann used his name because he owed so much that he would never be able to pay, so for a hefty fee he used his name and company to transfer the assets of the Landsbanki elite to offshore accounts. This was so obvious since everyone knew that the bank was done for at this time.  Icelandtalks website - 15-Jul-09.

Offshore Tax Havens Innocent in Global Financial Crisis

Many of us are still wondering where the current global financial crisis began; did it begin because of weak regulatory practice onshore in London, was it as a result of greedy bankers in New York, or were offshore tax havens like the Isle of Man perhaps to blame for allowing wealthy individuals to shield their wealth from taxation?

Well, a review into what exactly caused the economic breakdown that is affecting the world at the moment was commissioned and has been completed by Lord Turner, who’s the UK’s Chairman of the Financial Services Authority.  He has looked right into the heart of the issue to determine how we have ended up in this mess, and how we can protect ourselves from ever falling foul of such a crisis again.

And the good news is, (if there is any at all!), that offshore tax havens are actually innocent in terms of the global financial crisis.  . .

Therefore, those who continue to muck rake and slate offshore tax havens for corrupting economies of the world and for causing great disharmony economically speaking, clearly do not have a leg to stand on!   Shelter Offshore website - 14-Jul-09.



Why do Shelter Offshore Readers Hate the Isle of Man?

Since publishing an article this week about saving offshore in the Isle of Man we have been inundated with complaints by our readers who point out the scandals and negative headlines that have dogged the jurisdiction over the past twelve months or so. . .

. . .It is alleged by the government that three quarters of all savers affected by the collapse will be fully compensated – this is far better than those affected when Landsbanki in Guernsey failed for example. . .  Shelter Offshore website - 03-Jul-09.


Landsbanki action group lodges Commonwealth appeal

The Landsbanki Guernsey Depositors Action Group (LGDAG) has called on the Commonwealth Parliamentary Association (CPA) to support its attempts to recover 100% of its members' savings deposited with the failed bank.

In an open letter to CPA representatives attending the organisation's International Parliamentary Conference in Guernsey, LGDAG seeks to draw delegates' attention to the plight of its members whose savings are still frozen eight months on since Landsbanki Guernsey was placed into administration.  International Investment 16-Jun-09
Also (identical article)

Gib MPs fly to Guernsey storm

The Landsbanki Guernsey Depositors Action Group say they want to make us aware that "your Gibraltar MPs have flown into a media storm in Guernsey, which is this week hosting a CPA conference on, ironically, the financial crisis and the response by parliamentarians - ironic because Guernsey is the only country in the world that has refused to help stricken pensioners who recently lost the majority of their life's savings deposited in the Cheshire Building Society's Guernsey subsidiary (acquired by Landsbanki hf)."  Panorama Gibraltar website - 17-Jun-09.

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