Landsbanki Guernsey Crisis & Charles Parkinson's Inaction

Charles Parkinson is described as the Treasury and Resources Minister Deputy in Guernsey. Another one with predictable views on the plight of the Landsbanki Guernsey savers.

His quote recently was this: "'From the outset we have made clear that the Depositors Compensation Scheme which we are working on establishing in Guernsey next month will not be retrospective. This means that Landsbanki Guernsey depositors will not be able to apply for compensation when the scheme is up and running. It is for the administrators to decide on the future of the bank but, as I say, whatever action they take Landsbanki Guernsey depositors will remain outside of the scope of the proposed scheme." - Well thats a lovely bit of Schmoozing there Charlie. How about saying it in fewer words? Might we suggest: "Guernsey will give the Landsbanki savers the finger if we can get away with it. PS, Please invest here, it's safe, honest Guv. Trust me, I am a politician!" as a more accurate translation?

Another quote from Charlie: "we fully understand the need for depositors to be kept up to speed on developments." That's super Charlie! Would you mind bringing us up to speed as regards what you and the other riders on the Guernsey Gravy Train are actually doing about this, other than quaffing Chinese food - in China - and flying around the world signing tax agreements that could be sent by DHL instead?

When Charles Parkinson was on the BBC Radio 4 "Moneybox" programme recently, he was asked about Landsbanki Guernsey. He was asked: "Presumably people will never get all their money back. Is that the bottom line?" to which his reply was: "No, I donít think that can be concluded at all. There are assets which exceed the bankís liabilities, thatís true even if you disregard the loan up to Landsbanki in Iceland and assume thatís completely irrecoverable. The remaining assets of the bank, at book value, more than cover all the deposits, but absolutely crucial issue here is what the recovery rate is achieved on those assets." Thats great Charlie - if you are so confident, why not offer to fund any shortfall pending you getting the cash back from Iceland? If you claim you haven't got the money, why not use some of the £15m per year Guernsey gets as a kickback from the tax deducted on depositors interest under the EU Savings Directive?

Another quote from Charles Parkinson from BBC Five Live's Wake Up To Money programme: "Itís very unfortunate. On the other hand the depositor base in the island seems to be holding up rather well and some of the banks here have actually benefitted from the so-called flight to quality. I donít think itís done very serious damage to the reputation of Guernsey" Charlie speaks here of "flight to quality", is this a defacto admission that Landsbanki was not a quality bank? Our translation of that says, "We knew Landsbanki was iffy, but we kept quiet" - Nice! As for Guernsey's reputation, see what we say here: Banks in Guernsey.

Charlie is hopeful that Landsbanki will go into liquidation before the new depositor protection [sic] scheme comes in. He was quoted in the Guernsey Press as saying: "I think in practice the bank will go into liquidation long before January" "We are in regular contact with the administrators and obviously it is their decision, but my sense is it will shortly be put into liquidation" - Inside info Charlie? Timing it right are we?

This site says: The Guernsey Government should compensate savers for any shortfall if the administrators of Landsbanki Guernsey cannot. Every other government in the world appears to be doing this in their own jurisdictions. You could use some of the £15m a year you make from information snooping for the tax authorities in the UK, or maybe some of the tax and other monies you made from Landsbanki to date. You have a better chance than the savers of claiming it back from the Icelandic government. You and the plane hopping Lyndon Trott better hope savers do not start a class action for compensation, such as has taken place in the UK with the case of Equitable Life where the regulation appears to have been insufficient or ineffective.

If Landsbanki Guernsey was poorly regulated and inadequately supervised (as some suggest), you boys better start working to correct the losses that the Landsbanki Guernsey savers may suffer or pay the price with your reputation.

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

Media: Please contact Charles Parkinson and ask him to clarify what he is doing about Landsbanki savers.
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