info.LandsbankiAction.org.gg   30-Mar-2016: Liquidators' Update, see Deloitte site

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This page contains brief summaries of and links to media reports that the site editors have selected as the most important or relevant.

Iceland says Landsbanki assets worth $1.4 billion more

REYKJAVIK, March 2 (Reuters) - Iceland said on Wednesday it had revised up its estimate of the value of the assets of failed bank Landsbanki, a casualty of the 2008 financial crisis, so that it now had some $1.4 billion more with which to pay off debts to creditors.

Britain and the Netherlands spent billions of pounds and euros to compensate savers who lost money in so-called 'Icesave' accounts operated by Landsbanki, and both countries have been pressing Iceland to get money back.  . .

The Icelandic crown is not traded freely due to strict capital controls, but according to the central bank's latest crown value, 160 billion crowns is worth $1.4 billion.

Opinion polls show Icelanders will approve the new deal.
A resolution to the Icesave dispute is seen as important for the country's recovery and eventual financial rehabilitation. London South East website.  02-Mar-11.

http://www.lse.co.uk/FinanceNews.asp?ArticleCode=uo6bplvhom25vxl&ArticleHeadline=Iceland_says_Landsbanki_assets_worth_14_bln_more

Key players in Iceland bank crash in court as witnesses

It is believed as many as seven people will bear witness today at the Reykjavik District Court in the case against Baldur Gudlaugsson, former permanent secretary at Iceland’s Ministry of Finance.

Jonina S. Larusdottir, former permanent secretary at the Ministry of Trade, is at the top of the witness list . . .

It was also expected that Ingimundur Fridriksson, former director of the central bank, and Halldor J. Kristjansson, former director of Landsbanki, would testify today by telephone. The judge decided at the beginning of proceedings this morning that they need to testify in person. They will therefore be called upon at a later date.

Gudlaugsson is accused of insider trading, allegedly having sold all his personal Landsbanki shares shortly after sitting in on a meeting with UK Chancellor Alistair Darling and shortly before the bank’s collapse in the autumn of 2008.  02-Mar-11.


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.

Mervyn King drawn into fresh row over Icesave collapse

 

• Iceland's former central banker claims King gave assurances UK would not press for guarantee on £5bn of Britons' savings
• Spokesman for King issues denial and says he had been urging country 'for months' to shrink its banking system

A bitter war of words between Bank of England governor Mervyn King and his former counterpart in Iceland is threatening to reopen old wounds from the Icesave scandal, in which billions of pounds of British deposits were ensnared in the north Atlantic island's financial meltdown just over two years ago.

The row comes at a sensitive time in the Icesave saga as Icelandic MPs are scrutinising a controversial bill outlining terms under which Iceland would repay foreign governments that picked up the tab for retail deposit guarantees.  23-Jan-10.

http://www.guardian.co.uk/business/2011/jan/23/icesave-banking

 

Landsbanki executives arrested in Iceland

Police in Iceland have arrested the former boss of failed bank Landsbanki and another senior executive.

Former chief executive Sigurjon Arnason and Ivar Gudjonsson, ex-head of the bank's investments arm, were held on allegations of market manipulation.  14-Jan-11.

http://www.bbc.co.uk/news/business-12195573

Icelandic banks 'broke the rules' before UK deposits

Glitnir and Landsbanki were breaching banking regulations by the time 64 British local authorities deposited most of their £800m into the Icelandic lenders, according to two secret reports on the collapse.

Documents commissioned by Iceland’s special prosecutor and seen by The Sunday Telegraph suggest Glitnir was operating below the legal limits of its capital adequacy ratios by the end of 2007. A second report for the prosecutor’s office claims Landsbanki also breached the conditions of its banking licence at the end of 2007.. . .

Both reports are critical of Landsbanki’s and Glitnir’s auditors, the Icelandic branch of PricewaterhouseCoopers (PwC), arguing that it should have spotted mis-statements.

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/8196161/Icelandic-banks-broke-the-rules-before-UK-deposits.html

 

PricewaterhouseCoopers criticised in Landsbanki crash report

A report on behalf of Iceland’s Special Prosecutor into the banking crisis says that the Icesave debt upon the Icelandic state would have been massively lower had PricewaterhouseCoopers, Landsbanki’s external auditing company, done its job properly.

According to the report’s Norwegian main author, if PricewaterhouseCoopers had been honest in its reporting of Landsbanki, the bank would have lost its operating licence no later than the end of 2007.

Among other things, the report criticises the auditors for not having flagged up the so-called Icelandic Affair. The Icelandic Group took massive loans from Landsbanki and was allowed to continue borrowing after it became apparent the company would have difficulty servicing its debts. Icelandic Group was saved from being put on Landsbanki’s defaulters’ list by a EUR 40 million loan from Grettir ehf. Grettir ehf. in fact got the 40 million directly from Landsbanki and all three companies involved were owned by Bjorgolfur Gudmundsson. . . 10-Dec-10.

http://www.icenews.is/index.php/2010/12/10/pricewaterhousecoopers-criticised-in-landsbanki-crash-report/

Landsbanki Guernsey depositors challenge island's chief minister

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.

http://www.telegraph.co.uk/finance/personalfinance/offshorefinance/8189903/Landsbanki-Guernsey-depositors-challenge-islands-chief-minister.html

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.

http://www.ifcfeed.com/guernsey-articles/Guernsey-Financial-Services-Commission-issues-Landsbanki-statement.aspx

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.

http://www.channelonline.tv/channelonline_guernseynews/DisplayArticle.asp?ID=492126

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