Landsbanki Guernsey depositors fighting for the return of their entire savings are now facing another battle - against the island's chief minister, who is accused of misleading the Guernsey States Assembly over the proportion of their funds depositors are likely to see returned.
Depositors are considering making a formal complaint to the States Members Conduct Panel against Chief Minister Lyndon Trott, who twice stated they could recoup in excess of 100 per cent of their savings - a remark referred to by administrators Deloitte as "speculation."
Deloitte have long estimated that the best depositors should hope for is a recovery of 81-90p in the pound over the next few years. A higher return is, in theory, possible if legal action in Iceland proves successful although Deloitte "remain cautious about the prospects of success." 09-Dec-10.
Creditors at Iceland’s banks said they will fight measures that hurt their financial interests after the government sought a guarantee from the country’s lenders that they forfeit their right to sue the state. . .
Creditors “reserve all rights to pursue any and all legal remedies to prevent the losses caused by the proposed legislation,” according to a letter signed by Ragnar Adalsteinsson, a lawyer with Adalsteinsson & Partners representing the Coordination Committee of the International Commercial Lenders Group, which includes creditors of Kaupthing Bank hf, Glitnir Bank hf and Landsbanki Islands hf.16-Nov-10.
Pall Benediktsson, spokesman for the Landsbanki resolution committee, says that a special investigations team at the auditing company Deloitte has been preparing a report into alleged misconduct at Landsbanki before the crash in autumn 2008.
“There they have professional bookkeeping investigators doing much the same as Kroll for Glitnir. They will hand in their report on their investigation at the next bank creditors’ meeting on 27th May,” Benediktsson told Visir.is . . .
Benediktsson is unhappy at an article published this week on Visir.is saying that the Landsbanki committee constantly drags its feet on communicating openly compared to its Kaupthing and Glitnir counterparts. He said it is simply not true that the committee has been withholding information. 15-May-10.
When you look back on 2009, what will you remember? Barack Obama’s inauguration, the panic over swine flu, the worst global recession for decades, the death of Michael Jackson?
Since January we have highlighted the cases of hundreds of readers who have faced financial crises. As the year draws to a close, we revisit a selection to find out how they have coped.
We also highlighted the plight of 1,600 savers who had about £120 million invested in Landsbanki Guernsey when the Channel Islands bank was placed into administration. They are a step closer to getting their money. 26-Dec-09
The panic may have subsided since last year, but many savers and investors are still fighting to reclaim their cash from collapsed banks. . .
A total of 1,600 savers — more than 90 per cent of them British — had about £120 million invested when the Channel Islands bank was placed in administration last October. Depositors have so far received about 55p in the pound from the administrators. The Guernsey authorities have promised nothing.
Matthew Dorman, a member of the Landsbanki Guernsey Depositors’ Action Group, says: “The administrator expects that the final repayment would be in the range of 70 to 80 per cent. But that would be far short of the 100 per cent that depositors in Landsbanki’s UK and Dutch arms received almost nine months ago.”
Mark Ashbey, another member of the action group, is horrified by Guernsey’s failure to support depositors. “It is truly incredible that affluent Guernsey is still the only country in the world that has refused to help stricken savers in any way,” he says. 26-Sep-09.
They are the forgotten victims of the credit crunch — the people whom the Government has quietly filed in a box marked “ignore, no help required”. But help is exactly what they need. Thousands of savers who trusted their money to banks in the Isle of Man and Guernsey are still waiting to find out if they have lost a big chunk of their life savings. . .
Westminster’s refusal to grant compensation is understandable. In a Parliament obsessed with spending cuts, bailing out offshore savers is never going to be a priority. However, that does not mean that these victims should be abandoned. Pressure should be applied to the Isle of Man and Guernsey authorities to ensure that as much of their savings are returned as possible, as quickly as possible. To the Isle of Man’s credit, it does seem to be trying, but so far payouts from the island’s compensation scheme have been painfully slow.
However, even faint praise cannot be extended to the Guernsey authorities. Worried about the damage to the island’s reputation, it has belatedly introduced a hopelessly inadequate compensation scheme, but it is not open to the Landsbanki victims. 26-Sep-09.
Eleanor Monaghan, Jersey LGDAG representative was interviewed by BBC Radio today, regarding the Administrator of Landsbanki Guernsey's proposed legal action to challenge the inequitable treatment of LG depositors as compared to those who saved with IceSave in the UK and Netherlands, which renders the former as ordinary creditors while the latter have been defined as preferential creditors due to those Governments' intervention.
The clip can be found via the link below and when the player page opens, click on the play button, then again on the timer bar at just after 1 hour 11 minutes (nearly in the middle of the bar) to find Eleanor's excellent interview. 18-Sep-09.
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.
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
Delegates from commonwealth countries have been in Guernsey to discuss what governments can do about the global economic downturn.
For the island it's a reminder of its own high profile victims of the credit crunch, the depositors in Landsbanki Guernsey. Account holders are lobbying delegates to raise awareness of their cause. 15-Jun-09