I am writing to you, as I am very concerned about the iniquitous treatment by the Guernsey government in not following the UK in extending the guarantee to depositors of the above bank in Guernsey. There are a number of unfortunate individuals like me who are retired and placed their life savings, earned abroad with this institution. It was not for any tax evasion or even avoidance.

As a Chartered Accountant, I believe that you need to take a bold, imaginative and unprecedented action for the long-term benefit of the Guernsey economy, which is so heavily dependent on the Financial Services Industry. You have accumulated a special reputation and expertise for this round the globe over many years and seen the cumulative benefit in the last few years. I am sure that you do not wish to have loss of confidence in the backbone of the industry or see this prejudiced. In fact, I would suggest that your bold action would bring very handsome dividends for the future. In this, you well know that the Isle of Man protects depositors. Its no good telling people that you are considering a Protection Scheme for the future, which would exclude the current savers in Landsbanki Guernsey.

I have lived and worked in Scandinavia. My views are based on the Norwegian model where a country with a small population decided not to fritter its oil revenues or join the EU but to conserve its earnings for the common good of the people in the next hundred years. By this action, they have secured a highly respected, commanding position in the developed world.

Normal 0

I gather you are off to China. Needless to say that in marketing ’Guernsey Finance PLC’, your mission will be greatly facilitated if you can come to an urgent and just solution to the treatment of the Landsbanki savers.

I very much welcome your views.

Yours sincerely

CC:

Mr Ken Gibbs Chairman,Association of Guernsey Banks;

Treasury and Resources Minister Charles Parkinson

Peter Neville - Guernsey Financial Services Commission

Editor, Guernsey Press

Post Points: 20

Sat, Oct 11 2008, 11:09 AM

Donkey
Joined on Sat, Oct 11 2008
Just Browsing
Points 45

Re: Landsbanki – Guernsey

Reply Quote Spam

If Guernsey wants to be taken seriously be world financial markets it should support and compensate its depositors.

Both the Isle of Man and Jersey have made public commitments and as such have won a PR coup, which could see them capture future business at the expense of Guernsey to the detriment of the whole Guernsey finance industry affecting, banks, investment advisors, managers & brokers, the insurance, fiduciary & pension companies. The potential unemployment consequences of banks dropping their Guernsey operations in favour of those in the Isle of Man or Jersey could be significant for the Guernsey economy.

The Government appointed the Guernsey Financial Services Commission (“GFSC”) to supervise and regulate banking activities within the Island and they have clearly not done a sufficient job in this case.

The Guernsey Government should compensate savers, as every other Government in the world appears to be doing in their own Jurisdictions, otherwise they might find themselves subject to a class action legal claim 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.

The Guernsey Authorities have now admitted and acknowledged that if the local banks and branches are effectively lending most of their deposit funds to their parent organisations that when the parent is unable to repay such deposits because they become insolvent, any guarantee from a parent bank requested by GFSC prior to issuing a licence for banks to operate in Guernsey is also worthless.

The Guernsey government might be working behind the scenes to claim compensation from Iceland, but that is of little comfort to depositors until they publicly state that they will guarantee these deposits or offer some compensation. The Guernsey Government appear to be less pro-active than the UK authorities who appear to have frozen Landsbanki assets in their jurisdiction an action that has not reportedly been taken by the Guernsey authorities to protect or contribute to compensating depositors of the Guernsey bank.

Post Points: 5