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

Media Reports

This page contains brief summaries of and links to media reports of relevance. Click on one of the topics or the source below each entry to see only reports on that topic or from that source.  See Selected for the media reports that the site editors have selected as the most important or relevant.

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The Landsbanki collapse accounted for only a small proportion of this fall, but other banks have since withdrawn.  07-10-10.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

Iceland's Ex-Premier Defends Innocence in 2008 Crisis

Iceland's former Prime Minister Geir H. Haarde defended his role in the 2008 implosion of the island's financial system after a parliamentary committee recommended he be indicted for "violations" of his duties. . .

The committee of nine lawmakers was appointed in April after a separate commission investigating the causes of the 2008 crisis found that the government, central bank and financial regulator had all been "negligent" in their failure to address some of the factors that exacerbated the collapse. . .

A special prosecutor appointed to investigate the banking collapse is still probing the three lender' records. Three Kaupthing executives were arrested in May and released after spending as long as 12 days in solitary confinement.  . .

The committee also found that Haarde should be indicted because he failed to ensure that Landsbanki created a U.K. subsidiary when selling its Internet Icesave accounts there -- a measure that would have forced the British government to cover depositor claims, it said.  Bloomberg Buisness Week
Mon, 13 Sep 2010
article reprinted on [Quantum Future Group, ISA] website - 18-Sep-10.

Iceland intends to repay the Netherlands - paper

(Reuters) - Iceland will honour its promise to repay the Netherlands money that Dutch savers lost in the online accounts of a failed Icelandic bank, Iceland's finance minister said in a newspaper interview on Saturday.

Steingrimur Sigfusson told De Telegraaf, the Netherlands' largest newspaper, that the Dutch people had nothing to fear.

"The Netherlands can rest easy. Their money really will be returned," Sigfusson told the paper.

The British and Dutch governments want Reykjavik to return money paid to depositors whose funds were frozen in so-called "Icesave" accounts operated by Landsbanki, which collapsed along with Iceland's other main commercial banks in 2008.  18-Sep-10.

USA at Peace with Iceland? Ambassador finally arriving

The United States have not had an ambassador in Iceland since spring 2009. In April 2010 President Obama appointed Luis E. Arreaga Rhodas as ambassador in Iceland. . . This is because of an insult to the previous US ambassador by President Ólafur Ragnar Grímssson. . .

The reason for a long period of official chill between Iceland is rooted in the event last year when the President of Iceland, Ólafur Ragnar Grímsson, announced to her on April 8 that she would be honored with the Order of the Falcon, the highest recognition of the Icelandic state. When Ambassador von Voorst was on her way to the presidential residence Bessastadir to formally accept the Order, she received a phone call explaining that the announcement had been sent by mistake and that she would not receive the Order after all . . .

Grímsson allegedly explained to her that only those who were deemed worthy were honored this way. In the past decades, three US Ambassadors to Iceland have received the Order of the Falcon.

President Ólafur Ragnar Grímsson did present the Order of the Falcon to Björgólfur Gudmundsson, then chairman and owner of Landsbanki. . . Mr. Gudmundsson was deemed worthy.  13-Sep-10.

Former Iceland PM faces trial over bank collapse

A special investigation committee, known popularly as the Truth Commission, recommended that Geir Haarde, the former prime minister, stand trial, along with Björgvin Sigurdsson, the former minister of commerce, and Árni Mathiesen, the former minister of finance.

It found during an 18-month inquiry that the three men showed recklessness in their handling of Iceland's financial crisis, which brought down its three banks and crippled the currency in October 2008 .  . .

Johanna Sigurdardottir, Iceland's left-leaning Prime Minister, called the report's conclusions "a serious accusation against our political system, our politicians, the parliament, stock market". 12-Sep-10.

Iceland Committee Seeks to Indict Ex-Premier for Role in Crisis

Sept. 11 (Bloomberg) -- Iceland's parliament must decide whether to charge leading members of the country's 2008 cabinet with negligence that contributed to the island's banking collapse after a committee recommended they be indicted.

The parliamentary committee will ask the Reykjavik-based legislature to indict former Prime Minister Geir H. Haarde, former Foreign Minister Ingibjorg Solrun Gisladottir, former Finance Minister Arni M. Mathiesen and former Business Minister Bjorgvin G. Sigurdsson, according to a written motion delivered to lawmakers today. . .

Parliament may reach a decision on the indictments within days, Sigurdardottir told reporters in Reykjavik today. 11-Sep-10.

Iceland Won't Settle Icesave Feud `at Any Price,' Arnason Warns

Iceland’s new Economy Minister Arni Pall Arnason wants to make clear to the U.K. and Netherlands his government won’t negotiate a depositor claims settlement at any price and may resort to the courts in pursuit of better terms. . .

Moody’s in July said continued failure to resolve the Icesave dispute may prompt the International Monetary Fund and other lenders to withhold future disbursements. Iceland has been relying on a $4.6 billion IMF-led loan since 2008 to stay afloat. The fund said on July 23 it was aiming to conduct its third review of Iceland’s loan in early September. Arnason said a date for that review has yet to be set.  08-Sep-10.

Landsbanki's Bond Holders Will Get Next to Nothing, Finance Minister Says

Creditors of failed Icelandic lender Landsbanki Islands hf will get next to nothing back from their investments after assets are sold to cover the bank’s priority claims, Finance Minister Steingrimur Sigfusson said.

The comments end hopes creditors, including BNP Paribas SA and Nordea Bank AB, may have had of recouping their share of $27.4 billion in debt owed them since Landsbanki’s collapse in October 2008.

“The general claimants in Landsbanki are not likely to get much, if anything,” Sigfusson said in an interview in Reykjavik yesterday. “In the other banks, the situation is better and they will get some return,” he said, referring to bond holders in Kaupthing Bank hf and Glitnir Bank hf. . .

The government is considering guaranteeing the portion of $5.2 billion in Landsbanki’s depositor claims that won’t be covered by asset liquidations, estimated at about 10 percent, Sigfusson said. That includes Icesave deposits and other claims against collateral. 24-Aug-10.


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