I woud propose that we send the following as an open letter, publicise it as far as possible with the press and put it on the website to go live this afternoon. It do not want to act alone however especially in holding myself out as speaking for the "Landsbanki Guernsey Depositors Action Group", therefore I will only send this letter if I get a least ten responses below saying "LETTER YES".
Peter Harwood LLB
Chairman
Guernsey Financial Services Commission
PO Box 128
La Plaiderie Chambers, La Plaiderie
St Peter Port, Guernsey
Channel Islands, GY1 3HQ
Jim Gilligan
Chairman
Association of Guernsey Banks
c/o Kleinwort Benson (CI) Ltd
P.O. Box 44
St Peter Port
Guernsey
Channel Islands
GY1 BG
Dear Sirs,
Landsbanki Guernsey Limited
As you are aware, Landsbanki Guernsey Limited was put into administration on Tuesday 7 October 2008. The response of the Guernsey Financial Services Commission to numerous enquiries from worried depositors has been simply to refer the matter to the administrators of the Bank. The Association of Guernsey Banks is yet to comment on the failure of one of its own members. This is in stark contrast to the decisive action taken by the authorities of other countries faced with similar situations over the past weeks of turmoil.
We understand that this situation has arisen due to the failure of an Icelandic bank however, Landsbanki Guernsey Limited is a bank registered in Guernsey and regulated by the Guernsey Financial Services Commission. It is therefore a proxy for the integrity of the Guernsey banking system as a whole and it is not acceptable for the Guernsey authorities to write this off as an Icelandic problem. The treatment of those who have trusted their savings to Landsbanki Guernsey Limited must hold true for all those with money deposited in any Guernsey bank.
We therefore call on the Guernsey Financial Services Commission and the Association of Guernsey Banks to take steps to immediately secure the savings of all those who put their faith and confidence in Guernsey as a financial centre. If it fails to act, Guernsey will stand alone amongst the financial centres of the developed world as being unable or unwilling to protect the savings of those who put their trust in it.
Yours faithfully,
The Landsbanki Guernsey Depositors Action Group