What About The Forgotten Landsbanki Guernsey Savers?

Following the recent crash of the Icelandic banks, and their subsequent nationalisation by the Icelandic Government, most savers across Europe were covered. Savers in the UK based branches of Icesave and Heritable banks are covered by the UK compensation schemes. Savers in Landsbanki Guernsey (now in administration) do not technically fall under the provisions of the UK guarantee, nor Icelands guarantee and Guernsey (that well known bastion of international banking) does not even have a guarantee!

Was there any guarantee at all? Yes there was. Landsbanki Guernsey's website said this: "Deposits made with LG are not covered by the Financial Services Compensation Scheme established under the UK Financial Services and Markets Act 2000. Landsbanki has given an undertaking to discharge those liabilities of LG which LG is unable to discharge from its own assets, whilst it remains a Landsbanki subsidiary."

However, as Landsbanki's parent has been nationalised by the Icelandic Government, that guarantee should now fall on them as the new owners. But Iceland is almost bankrupt and is seeking support from Russia and the IMF to stay afloat. The responsibility for information regarding that guarantee now lies with Geir Haarde, the Icelandic Prime Minister. He has not commented to date on this issue. See the link to the right for more information.

Aren't Guernsey and the Channel Islands part of the UK? It would seem not although it is hard to spot the difference. They are "Crown Dependancies" and the UK is responsible for their defence, representation abroad and other things. Gordon Brown has been strangely silent on the subject, despite often hooting that "Nobody in the UK has lost a penny in the banking crisis" quite often, he did not consider the UK passport holders and UK residents who were savers in Landsbanki Guernsey (or indeed the foreign investors who consider Guernsey as part of the UK and thus thought it safe). See the link to the right for more information on Gordon's priorities.

Isn't Guernsey full of tax evaders and millionaires anyway? Thats what Vince Cable, Liberal Democrat MP for Twickenham thinks. He is dangerously misinformed. Most Guernsey savers were Guernsey Islanders, expats, retired people and others who were sucked in against their will from the purchase of other institutions. People with tax paid money investing legally. Read more about the ill-informed Vince Cable in the link to the right.

What about the Guernsey authorities? Yes what about them indeed.... Peter Neville who is the Director General of the Guernsey Financial Services Commission was one of the delegation that (belatedly) went to London to meet Treasury officials to enlist the help of HMG in representing Guernsey's interests to the Icelandic Government. We are hopeful that his work will help the depositors - he will be hailed as a hero on this page if his work helps Landsbanki depositors.

Maybe the Chancellor, Alistair Darling will help? After all, Jersey & Guernsey both receive around £10m-£15m (each) per annum from their share of the tax deducted on depositors interest under the EU Savings Directive. The UK treasury has received around £100m since it was introduced back in 2005. Yet, only £82m is needed to pay Landsbanki Guernsey depositors. Alistair has been pro active on mainland UK Icelandic banks, yet silent on Landsbanki Guernsey. Read more on his picture link to the right.

Peter Niven is the guy in Guernsey whose job it is to formulate and deliver policies, strategies and legislation aimed at securing and enhancing the well being of the financial services sector of the economy (whilst considering how these might impact upon other business and commercial interests). He celebrated the collapse of a bank on his island by jetting off to the Orient. Read about him on the link to the right.

Guernsey's Chief Minister - Lyndon Trott - holds the highest elected position within the State of Guernsey. He also was off to the orient on a junket as the collapse of Landsbanki Guernsey broke out. Read about his inaction by clicking his picture on the right.

The politicians in Guernsey need to enlist the help of the UK government, the international community, the media and the IMF to exert pressure on Iceland to make it honour it's obligations. Iceland must be pressed hard to clarify their position on this issue.

If Landsbanki savers lose one penny of their deposits, Guernsey forever will be marked as a place that depositors’ cash is not safe. This site and others will shout that from the rooftops. It will be “RIP” Guernsey as our humorous picture on this page depicts.

When Landsbanki Guernsey depositors are paid in full, this site - and its content - will be took offline.

Hover over any picture on the right to see who is who - then click the picture to go to the page about them!