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

Guernsey News

This page contains brief summaries of and links to media reports on the topic of Guernsey News.

Chief minister links conduct complaint to Landsbanki group

Chief Minister Lyndon Trott has drawn attention to the link between a code of conduct complaint against him and the Landsbanki depositors’ action group.

In an email to States members, he referred to the group’s website on which an article is posted that implies he has misused his position to promote a private finance company.

‘This website is registered to Gary Blanchford, known to many as the spokesperson for the Landsbanki Guernsey Depositors’ Action Group,’ said Deputy Trott.

‘I intend to draw this site to the attention of the States Members’ Conduct Panel. ‘In doing so, I am conscious that in the words of the spokesperson for the group there is, apparently, no link between his vexatious complaint against me and other matters,’  24-Feb-11.

Guernsey Financial Services Commission issues Landsbanki statement

The Royal Court has granted the application for the compulsory winding up of the company and has agreed to the appointment of the former Joint Administrators (“JAs”) as Joint Liquidators (JLs”). Messrs Richard Garrard and Lee Manning have been duly sworn in as JLs.

The GFSC had no objection to the JAs applying to the Royal Court to put LGL into liquidation and said so in Court. This is a natural progression since the administration process had substantially run its course and the JAs were in the last phase of the recovery of LGL’s assets, principally the remaining property development loans. IFCfeed website. 08-Dec-10.

Landsbanki in liquidation

Landsbanki Guernsey has been placed into liquidation by the Royal Court.

The bank has been in administration for more than two years since the collapse of its parent in Iceland during the global financial crisis. Savers have so far received 67.5p for every pound they had in their accounts.

The Joint Administrators, Richard Garrard and Lee Manning, were appointed to recoup as much money as possible from the bank's assets. Now they believe that process has reached an end, and so the court has appointed them liquidators to wind the bank up. The Joint Liquidators plan to make a further payment to depositors of up to 7.5p in the pound. There could then be a final payment to savers of an unknown amount once the process of winding up Landsbanki Guernsey is complete.

The Guernsey Financial Services Commission is requesting the surrender of Landsbanki Guernsey's banking licence because it no longer has sufficient assets to be licensed.

Savers have campaigned for Guernsey's States to make up any shortfall in the repayments to them but have so far been unsuccessful, despite arguing that Guernsey should have protected their assets. The island introduced a depositors compensation scheme following the Landsbanki Guernsey affair. 08-Dec-10.

Deloitte to seek liquidation of Guernsey's Landsbanki subsidiary

Deloitte, the joint administrators of Landsbanki Guernsey, will apply to a Guernsey court next month to allow the failed Icelandic bank subsidiary to be placed into liquidation, according to a statement on the Deloitte website. . .

The report that Deloitte is expecting to seek to liquidate Landsbanki Guernsey comes a day after news that the UK government had rejected a petition by the depositors’ group for compensation, on the grounds that Landsbanki Guernsey was "not a subsidiary of a UK bank, but of an Icelandic company". . .

In its statement, Deloitte said the joint administrators had "notified creditors of their intention, subject to court approval, to place the bank into liquidation, and to make a further distribution to creditors of up to 7.5p in the pound". . .

“This is the day that many local pensioners who deposited their life savings in the Cheshire Building Society – which was taken over by the Icelandic bank – or into the 'Guernsey Icesave' – have been fearing for the last two years,” said Neil Dickens, chairman of the local chapter of the LGDAG. 

“My assumption is that we’re looking at the bottom range of 85p in the pound, because for the first time, they’re saying that the range could be outside the range of 85p to 91p in the pound," . . .

Dickens said the Guernsey Landsbanki depositors were dismayed to find that their hopes of receiving even as modest a payment as 90p in the pound increasingly seemed unlikely to be realised.

"What we want to know is, why we are not being made whole, like every other person who deposited in Icesave was," Dickens said.  By Helen Burggraf, International Adviser website, 16-Nov-10.


Guernsey government disagrees on bank compensation plans

In the wake of the Landsbanki Guernsey bank collapse and the loss of depositor savings, confidence in Guernsey as a financial safe haven continues to be questioned as its government equivocates over compensation plans.

The States of Guernsey Treasurer Charles Parkinson said that if another bank collapsed tomorrow, the taxpayer would have to foot the bill until the money could be recovered from the industry. . . .As a consequence of the 2008 Landsbanki collapse approximately £12 million is still owed to the 1,600 depositors, a third of whom are expatriates.

The island dropped four places in this year's Global Financial Centre Index, while the value of Guernsey deposits for the three month period to the end of June this year fell by nearly £2 billion. 03-Nov-10.

Banks' threat to withdraw cash (+ video subject to regional rights)

Guernsey's States have confirmed banks threatened to pull money out of the island if the depositors' compensation scheme was not changed.

The scheme was set up after the collapse of Landsbanki Guernsey.

It offers one hundred million pounds of compensation and is paid for by a levy on all local banks.

Twenty million pounds of that money has to be provided up front but the banks wanted that removed. They said they would move deposits to another jurisdiction such as Jersey which does not have that requirement. [Ends]  18-Oct-10.

Jersey and Guernsey: Channel Islands look East for new opportunities

As Jersey and Guernsey emerge tentatively from the global financial crisis, the islands’ financial institutions and professionals are increasingly targeting fast-emerging economies, notably China and India, as a source of new business.. . .

However, the Guernsey scheme was introduced too late to help 1,600 customers of Landsbanki Guernsey, which fell victim to the Icelandic banking crisis two years ago. . .

Disgruntled Landsbanki customers who formed an action group remain highly critical of the way the Guernsey authorities handled the situation, and want depositors to be paid in full.

Bank deposits in Guernsey have fallen from £187 billion in 2008 to £117 billion at the end of June this year, while Jersey has seen a fall from £200 billion to £167 billion, although the figures for June this year for Jersey show deposits rising again.

The Landsbanki collapse accounted for only a small proportion of this fall, but other banks have since withdrawn.  07-10-10.

Landsbanki: Two years on (inc. video: regional rights issues apply)

Depositors in the failed Guernsey bank, Landsbanki, are still waiting for the return of a third of their cash.

It's two years since the bank closed following the collapse of its parent in Iceland.

It's hoped they may eventually get up to 90% back.

Landsbanki Guernsey account holders are disillusioned by what they feel is lack of political effort on their behalf.

It's known that six of the depositors have died still waiting for the rest of their money in the two years since the collapse.

The Landsbanki Guernsey Depositors Action Group, which represents the claimants, has also criticised the claims system, describing it as "inexplicably archaic". 07-Oct-10.

Progress means there is now no need to meet Landsbanki savers

PROGRESS made in getting Landsbanki Guernsey depositors their money back means that no public meeting with them is now necessary, the States heard yesterday. . .

During question time Deputy David De Lisle sought an update on what the chief minister and Policy Council had done.

Chief Minister Lyndon Trott said that responsibility for recovering the depositors’ money rested with the Royal Court-appointed joint administrators – the Policy Council was in regular contact.

So far 67.5p in the pound has been returned – it is estimated that eventually depositors will get back 91p.  30-Sep-10.

Guernsey Financial Services Commission being disingenuous?

Right up to days before Landsbanki Guernsey collapsed in October 2008 the Guernsey Financial Services Commission had been reassuring concerned Landsbanki Guernsey savers enquiring by telephone that they need not fear for their savings because a 100% Parental Guarantee was in place. Indeed the Parental Guarantee had long been Guernsey's primary marketing tool to attract retail deposits to bolster its finance centre. Now that Landsbanki's Winding Up Board in Reykjavik has made abundantly clear that it is refusing to recognise any sort of guarantee, the GFSC appears to have changed its tune: it is telling enquirers that a Parental Guarantee was never a requirement and that - even if one were in place - it would not be legally binding. The question that springs to mind is: could savers be forgiven for thinking that the GFSC is being disingenuous? . . .

Now they are informing depositors who have lost life's savings that they should have read this obscure and very technical Consultation Paper and, by implication, should have moved their savings elsewhere. It was their own fault. Is the GFSC being disingenuous? What do you think?  12-Mar-10.

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