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


This page contains brief summaries of and links to media reports on the topic of About LGDAG.

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.

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.

Government rejects petition by Landsbanki Guernsey savers

A petition for help from the British Government signed by over 400 depositors who lost money in the collapse of Landsbanki Guernsey has been rejected.

Because the Crown Dependency did not have a deposit protection scheme, savers were not included in the UK Government's bail-out, and are still fighting for their return of their money.

The petition, which was submitted by campaign group The Landsbanki Guernsey Depositors Action Group (LGDAG), contained 433 signatures and implored the UK government "to support British savers in Landsbanki Guernsey in seeking the full and prompt return of their savings.”

The Government response however declared that because Landsbanki Guernsey was not a subsidiary of a UK bank but an Icelandic company, “regulatory oversight of Landsbanki Guernsey Limited is the responsibility of the Guernsey Financial Supervision Commission and therefore arrangements for depositors in Landsbanki Guernsey are a matter for the Government of Guernsey.”  16-Nov-10.


Deloitte to seek liquidation of Guernsey's Landsbanki subsidiary

Deloitte, the joint administrators of Landsbanki Guernsey, will apply to a Guernsey court next month to allow the failed Icelandic bank subsidiary to be placed into liquidation, according to a statement on the Deloitte website. . .

The report that Deloitte is expecting to seek to liquidate Landsbanki Guernsey comes a day after news that the UK government had rejected a petition by the depositors’ group for compensation, on the grounds that Landsbanki Guernsey was "not a subsidiary of a UK bank, but of an Icelandic company". . .

In its statement, Deloitte said the joint administrators had "notified creditors of their intention, subject to court approval, to place the bank into liquidation, and to make a further distribution to creditors of up to 7.5p in the pound". . .

“This is the day that many local pensioners who deposited their life savings in the Cheshire Building Society – which was taken over by the Icelandic bank – or into the 'Guernsey Icesave' – have been fearing for the last two years,” said Neil Dickens, chairman of the local chapter of the LGDAG. 

“My assumption is that we’re looking at the bottom range of 85p in the pound, because for the first time, they’re saying that the range could be outside the range of 85p to 91p in the pound," . . .

Dickens said the Guernsey Landsbanki depositors were dismayed to find that their hopes of receiving even as modest a payment as 90p in the pound increasingly seemed unlikely to be realised.

"What we want to know is, why we are not being made whole, like every other person who deposited in Icesave was," Dickens said.  By Helen Burggraf, International Adviser website, 16-Nov-10.


Government rejects calls for Landsbanki Guernsey compensation

The UK government has rejected calls for assistance from British savers who lost millions in the collapse of Landsbanki Guernsey.

The Landsbanki Guernsey Depositors Action Group petitioned the UK government for support in its campaign to recover savings lost when the Guernsey branch of Icelandic bank Landsbanki collapsed in October 2008.

The mostly expatriate customers of Landsbanki Guernsey have only received 30p in the pound from the bank’s administrator and cannot claim compensation because the Crown Dependency did not have a depositors’ protection scheme in 2008.

‘The Landsbanki Guernsey Depositors Action Group calls on the UK Government to support British savers in Landsbanki Guernsey in seeking the full and prompt return of their savings,’ said Matthew Dorman of the action group, which has pushed the States of Guernsey for compensation.

The UK government said Landsbanki Guernsey was an Icelandic bank and was the responsibility of Guernsey’s financial regulator. The Treasury noted that many banks do not allow expatriates to open onshore accounts but stated this was purely a commercial decision.[Ends] 16-Nov-1-.

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.

Another setback for Landsbanki Guernsey savers

Expat depositors battling for the return of their entire savings from Landsbanki Guernsey have learned they face hefty legal costs if they wish to continue the fight.

At a settlement meeting with the Icelandic Winding Up Board (WUB) on August 13th, depositors' claims for "priority status" were rejected and deferred to the district court of Reykjavik where legal representation could run into the thousands.

In contrast, UK and Dutch depositors with Landsbanki subsidiaries, represented by their respective governments, were awarded priority status and refunded in full within weeks of the bank's collapse in October 2008. 24-Aug-10.

Guernsey Landsbanki depositors unbowed by Iceland setback

Some depositors whose savings were trapped when Guernsey's Landsbanki bank collapsed, and who last week were told they must go to court in Iceland if they wish to continue their quest to reclaim all of their money, are vowing to fight on.

“We have said right from the beginning that we are after 100% of our money back,” Gary Blanchford, deputy chairman of the Landsbanki Guernsey Depositors' Action Group (LGDAG), said in an interview with the BBC, in which he also criticised the Guernsey government for failing to ensure that their depositors were treated on an equal footing with those in the UK and the Netherlands. International Adviser website 18-Aug-10.

Wall Street Journal writer interviews ministers and Landsbanki depositors

A US-based journalist has interviewed islanders who lost money in the Landsbanki collapse for a book about the global financial crisis.

Michael Casey, who writes for Dow Jones and the Wall Street Journal, was in the island yesterday and also spoke to Chief Minister Lyndon Trott and Treasury minister Charles Parkinson.

Mr Casey (pictured) said he wanted to focus his book on the human stories that have come out of the financial crisis and show how all parts of the world were affected by it because they were linked.  19-May-10.


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