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


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

Landsbanki savers get third sum

The administrators of Landsbanki Guernsey have said they intend a third distribution to creditors of between 11p and 12.5p in the pound in January.

The Joint Administrators said the ultimate recovery for creditors is estimated to be between 85p and 91p in the pound.

They also announced an extension to the administration of the bank until 6 January 2011.  17-Dec-09

Landsbanki under restriction due to FSA regulations before terrorist laws applied

A letter sent from the UK FSA, Financial Services Authority, to Landsbanki on the 3rd October 2008 established that assets were frozen five days before the British government introduced the terrorist law.

According to sources from a local Icelandic newspaper (Morgunbladid), the letter referred to the legislation of financial services and markets from the year 2000. GENPRU, the rules of supervision, said that the FSA had decided to put Landsbanki under certain conditions, including an unbound account in the UK containing no less than 10 percent of the overall deposit amount held on permanent deposit in British pounds.

These accounts would then have to increase up to no less than 20 percent of the funds before 6th October. During this time, Lanksbanki claimed it was almost impossible to provide such funds under extremely short notice. The FSA also stated that the account must be held at the British central bank, the Bank of England, or at a different account approved by the FSA. [Ends]  16-Dec-09.

SFO to launch probe into Icelandic banks

The Serious Fraud Office is poised to announce an investigation into collapsed Icelandic banks that operated in the UK. A probe, which will examine Kaupthing, Glitnir and Landsbanki, could be announced within days. Sources at the SFO said investigators were particularly interested in loans made to a number of "high-profile individuals".

Allegations of fraud, embezzlement and market manipulation have been under investigation in Iceland since February. But the SFO has separately been gathering intelligence on the Icelandic banking sector and its UK operations.  13-Dec-09.

Former Landsbanki Manager Charged for Fraud

The prosecutor of economic crimes has filed a charge against Haukur Thór Haraldsson, former managing director of Landsbanki’s operations division, for defrauding more than ISK 118 million (USD 965,000, EUR 640,000).

This is the first criminal case in relation to the banking collapse of October 2008 which has led to a charge being filed, Fréttabladid reports.

On October 8 last year, two days after the emergency law was passed in Iceland’s parliament, Haraldsson transferred ISK 118 million to his personal account from a domestic foreign currency account on behalf of Landsbanki’s subsidiary, which was registered in the tax haven of Guernsey. The following day the money was transferred to a different account in Haraldsson’s ownership. 

This case has been investigated for the past year and Haraldsson has always denied having been in breach of the law. He claims that he was attempting to save the bank’s money with the transfers because it wasn’t clear whether the Icelandic state would guarantee the bank’s deposits in offshore accounts.  04-Dec-09.

Saga of KS&F(IoM) collapse plays out in Tynwald

Hearings into the October 2008 collapse of the Isle of Man branch of Iceland’s Kaupthing Singer & Friedlander have captured the attention of IoM residents and KS&F(IoM) depositors, many of whom feel the full story has yet to be told. . .

Thus it was on 8 October,  he [Donald Gelling] went on, “without warning or having given notice of their intentions to the FSC or, I must say, KS&F(IoM)”  the UK Treasury and the FSA "combined to order the transfer of the majority of KS&F(UK)’s retail deposits" -- including those belonging to KS&F(IoM) -- to ING Direct, and placed the UK arm of Kaupthing into administration. . .

As recently as last month the Landsbanki Guernsey Depositors Action Group, which represents depositors in the failed Guernsey institution, sent a petition to all States of Guernsey deputies calling on them to demand “a full public inquiry” into Landsbanki Guernsey’s collapse. 

Mark Ashbey, a member of the LGDAG, said the Isle of Man deserved credit for its "willingness to allow a Tynwald Select Committee to publicly examine the causes behind Kaupthing’s failure” and whether possible shortcomings on the part of the  island’s  regulator contributed to it. International Adviser website - 18-Nov-09.



FSA under fire for lack of inquiry into Icelandic banks

The Financial Services Authority (FSA) will come under attack from MPs today for failing to carry out an inquiry after the collapse of Icelandic banks.

The Communities and Local Government Select Committee is furious that the FSA has chosen not to meet its demand for an investigation into losses suffered by local authorities with the banks.. .

Auditors have told councils that they can expect up to 80 per cent of the money back eventually, but no guarantees have been given and each Icelandic bank is operating separately. This means that at least £200 million is unlikely to be returned. The bulk of the cash — £630 million — went to Glitner Bank and Landsbanki, which have not started to process claims. 28-Oct-09.

Iceland Bank Collapse: 'FSA Failed To Act'

The former chief executive of one of Iceland's fallen banks has blamed regulators for the collapse of the country's financial system.

Tony Shearer ran the British-based bank Singer and Friedlander until it was taken-over by Iceland's Kaupthing in 2005.

He told Sky's Jeff Randall Live regulators failed to act on clear signs the Icelandic financial system was predicated on unprecedented levels of risk.

And he said it was "extraordinary" that the Financial Services Authority (FSA) did not do more to investigate the practices of Iceland's top banking executives.  26-Oct-09. . .

Landsbanki depositors want public inquiry into bank’s collapse

LANDSBANKI GUERNSEY depositors who lost their money when the bank collapsed have called for an independent public inquiry.

Just over a year on, the Landsbanki Guernsey Depositors’ Action Group has written to deputies asking for support in establishing a panel to review what was done before, during and after the Icelandic bank fell. . . .

‘There have been instances that have cropped up as a result of information that has become available from elsewhere that indicates the GFSC had not been exercising due diligence in conducting its inquiry.’

The letter, written by Matthew Dorman, described what was needed as ‘a public inquiry ensuring full disclosure, not only of actions prior to Landsbanki Guernsey being put into liquidation but also thereafter’.  20-Oct-09.

Icesave negotiations concluded – outcome presented


  • Principal conditions set by the Icelandic Althingi incorporated in supplementary agreements
  • Acceptance and Amendment Agreements concluded subject to approval by Althingi of amendments to legislation
  • Trilateral statement by Ministers of Finance on progress of Iceland’s Economic Recovery Programme in co-operation with the IMF

Following the entry into force of Act No. 96/2009 on 2 September this year, providing a state guarantee for the Icesave Loan Agreements, discussions have been held between the Icelandic government and the Depositors’ and Investors’ Guarantee Fund (the Guarantee Fund) and representatives of the governments of the UK and the Netherlands. These discussions have now concluded and the outcome has today been presented to the government, the parliamentary Budget Committee, the coalition party caucuses and the leaders of the opposition parties.

An understanding has been reached with the UK and the Netherlands. They accept the principal points of the conditions set by Althingi for a state guarantee with some deviations, however.  18-Oct-09.

For some, it is too late

A MINUTE’S silence was held yesterday on the Royal Court steps for three Landsbanki depositors.

The savers have died over the course of the year since the Icelandic bank failed, leaving debts of millions.

Guernsey depositors gathered on the steps of the Royal Court yesterday to mark the first anniversary of Landsbanki Guernsey being placed into administration. . .

The action group has fought to persuade the States to help them get their money back.  08-Oct-09.

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