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.

Iceland hits impasse over lost savings

Iceland's parliament is deadlocked over a controversial deal to reimburse the UK and the Netherlands for €3.9bn ($5.51bn, £3.34bn) of savings lost in a failed Icelandic bank.

Lawmakers had been expected to push towards a final vote on the accord this week after two months of fierce debate since Iceland's government reached agreement with London and The Hague.

But legislation to ratify the pact remained stuck in a parliamentary committee yesterday as the issue threatened to tear apart Iceland's coalition government and jeopardise international support for the country's economic recovery efforts.  11-Aug-09.

‘Landsbanki - FSA let island down’

NEW Guernsey Financial Services Commission director-general Nik van Leuven will be meeting his UK counterpart in the autumn. . .

‘The FSA let us down somewhat in the Landsbanki affair and we need to establish effective communication with them.

‘I think Landsbanki has probably created the environment where there is recognition of that.’  07-Aug-09.


No mandate and not expected - no wonder De Lisle is not going to Iceland

GUERNSEY’S Chief Minister has refused to allow another deputy to join him on a trip to Iceland to discuss the Landsbanki Guernsey situation.

Deputy David De Lisle said his offer had been declined despite him being prepared to pay his own way. .

‘I thought that having an independent viewpoint would have been a win-win all round. It was something that the Landsbanki Guernsey Depositors’ Action Group wanted and it would have given greater transparency to the chief minister.’   04-Aug-09.


Landsbanki shock [includes video clip]

Depositors fighting to get their savings back from Landsbanki Guernsey are shocked to find out how little was done by the States to help them.

An action group set up in the wake of the bank's collapse have filed a Freedom of Information request with the UK Government.

The account holders, who could lose up to a third of their savings, have been told no meetings were held with Guernsey or Iceland during the six months after the failure of Landsbanki.  29-Jul-09.

Full, unedited, video clip, available HERE: Select Wednesday 29 July, 2009, then click 'Play'. Once the clip is running, click on the timer bar beneath the video window and go to 12:45 minutes into the clip.

Landsbanki action is 'concerning'

Guernsey investors have accused the Chief Minister of not doing enough to help them over the failed Icelandic bank Landsbanki.

Lyndon Trott met with depositors in October 2008 and pledged to help them.

But a Freedom of Information Act request showed the State's treasury had held no meetings on the matter with the British Ministry of Justice.

Mr Trott said he is travelling to Iceland next week to meet with government representatives.

The Landsbanki Guernsey Depositors Action Group (LGDAG) have sent letters to deputies about the lack of action.  29-Jul-09.

No meeting on our case - Landsbanki savers

NO ONE from the States met their UK counterparts to discuss the collapse of Landsbanki Guernsey between September and March, a Freedom of Information Act request has revealed. . .

It was also confirmed that no meetings have taken place between the Ministry of Justice and HM Treasury regarding Landsbanki Guernsey.

The group say the lack of meetings calls into question Chief Minister Lyndon Trott’s claim that work to help retrieve savings has been going on ‘behind the scenes’.  29-Jul-09.

Iceland to hand bank stakes to creditors

Iceland is preparing to hand over large stakes in its three nationalised banks to their international creditors along with a 270bn krona (£1.3bn) injection of capital to revive the country's broken financial system.

The country's three biggest banks, Glitnir, Landsbanki and Kaupthing, failed last October owing $60bn (£36bn) to foreign institutions and savers.

Foreign bondholders, including most big UK banks and financial institutions such as pension funds and other institutional investors across the globe, are among the Icelandic banks' biggest creditors.

It is likely that they will end up controlling 100pc of New Glitnir (Islandsbanki) and 87pc of New Kaupthing, with the remaining 13pc held by the Icelandic state.  22-Jul-09.

KSF: 75 per cent to get all cash by September

THREE quarters of all Kaupthing Singer and Friedlander Isle of Man depositors will be paid back in full by the end of September. . .

Treasury Minister Allan Bell MHK said the DCS payments would be paid to about 5,000 to 6,000 eligible account holders 'as soon as possible'.
'We will have paid over 75 per cent of depositors by the end of September,' he said. . .

'If the Isle of Man stood by and did nothing, that would be irresponsible. It's a short-term loan and ultimately we will get the bulk of this money returned to reserves. How fortunate we are in building up reserves over the past few years. Who would have predicted the set of circumstances that brought about this collapse?'

He insisted the government had a 'sincere desire' to help the depositors. 'We do understand the personal tragedies the collapse has caused. We have done our utmost,' he told Tynwald.

Mr Bell said that with the bank now in liquidation, the government could now move on to the next stage and support an inquiry into bank's collapse. 21-Jul-09.

Manx govt funding to speed up compensation for KSF IoM depositors

The Isle of Man parliament has approved a £193m government funding package which will accelerate full repayment for more than three-quarters of depositors with Kaupthing Singer & Friedlander IoM.

The new funding package will enable full DCS entitlement to be paid out to claimants by early September, bringing a 100 per cent return of deposits to more than three-quarters of KSF IOM depositors.

The money from Manx government reserves will expedite payments of up to £50,000 per individual depositor under the island’s depositors’ compensation scheme.

The funding comprises £73m in direct support from government under the DCS regulations and an interest-free loan of £120m. This comprises £21m in advance of levies due from banks, and £99m against future dividends payable by the liquidator.  16-Jul-09.

See also:

Full repayment by September for majority of Kaupthing IoM depositors  International Adviser website - 16-Jul-09.

Kaupthing Singer & Friedlander savers to get compensation within weeks  Telegraph website - 16-Jul-09.

Icelandic savers to get money back  Reuters website - 16-Jul-09.

Isle of Man to pay savers £193m Financial Times website - 17-Jul-09.

Isle of Man to pay out £193m  City A.M. website - 17-Jul-09.

Letters reveal UK's battles with Iceland over bank crisis

The UK Treasury acted with "significant flaws in its rationale" over its handling of the Icesave banking crisis and Iceland was "opaque", "contradictory" and "failing to co-operate adequately" with the British Government.

These are just some of the accusations in a series of 69 confidential letters and briefing notes held by the Icelandic government on its explosive conflict with Britain over the collapse of the Landsbanki, Kaupthing and Glitnir basks.[sic] . . .

The dispute centres on whether the Icelandic government was legally allowed to prioritise compensation for domestic savers over foreign customers of the failed banks.  11-Jul-09.

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