The Bank That Sank

Guernsey Policy Council Releases and Statements 

Landsbanki Guernsey Depositors

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Deloites updates

The Expat Channel

Latest Information

1st May 2013, Deloitte update following Royal Court appearance. Click here

5th April 2013 Deloitte update, interim payout 4.6p June 2013  Click here

1st February 2013, Guernsey States can work on Arch Cru, but failed Landsbanki Guernsey Depositors. Click here

28th January 2013 EFTA rules for Icelandic Government Click here

4th January 2013, EFTA to rule on Icesave on January 28th 2013. Click here

30th December 2012 PwC fights £400m Icelandic bank claim. Click here

27th November 2012 A further update from Deloitte Click here

14th September 2012 Deloittes latest update Click here

15th August 2012, article in Expat Money Watch website. Click here

09 July 2012, Deloittes latest update, Click here

01 March 2012,  The Guernsey/Jersey Brussels Office now has its own website. Click Here

16th January 2012, Deloittes latest update click here

13 January 2012, letter to press on Guernsey's Depositor Compensation Scheme. Click here 

30 November 2011 Ernst & Young produce a review of the GFSC, depositors disagree with comments. Click here

Deloittes attend Guernsey Royal Court

 for interim payment approval

2.30pm Monday 29th April 2013


Firstly an Ordinary Division of the Royal Court sat in camera to discuss the finer points with the liquidators of the ongoing case in Iceland. Once that had been completed Mr R Collas, The Bailiff of Guernsey acting as Commissioner for the liquidation of Landsbanki Guernsey chaired a meeting in the Royal Court where the liquidators laid out their case for a second interim payment of 4.6%. This was approved  and the likely payout to depositors will be on or about the 15th June 2013. This will bring the total amount of money returned to depositors to 89.6% over a period of five years.


Nine Landsbanki Guernsey Depositors were in Court to hear the application and discussion regarding it. There was also one representative from the Guernsey Financial Services Commission. DeLoittes full summing up can be read here. Click here



Deloittes update

5th April 2013

Deloittes will apply to Royal Court for interim payout to Landsbanki Depositors.


In an update on the 5th April 2013 Deloitte have stated that they will go to Guernsey's Royal Court on Monday 29th April 2013 and a Cimmissioner's meeting will be heard to examine and verify the accounts of the liquidation to date and consider the payment to creditors of a second interim distribution amounting to 4.6p in the pound and consider the continuence of legal proceedings in Iceland.


Deloittes full update can be read here


The Guernsey Gazette Officielle notice can be read here




And still Guernsey's Depositor Compensation Scheme is totally inadequate compared with the UK and Europe.


Guernsey £50,000,  single person, Joint is double (UK £85,000, Joint £170,000, Europe €100,000, Joint € 200,000)


Guernsey, up to a maximum payout of £100,000,000 in any five year period.


UK & Europe, no maximum limit, no period of time


Many of our retail banks have pulled out of Guernsey over the last four years, that leaves fewer financial institutions to cover the scheme and it's voluntary with no prepayments! It will be interesting to see what happens when the next bank goes down?


Why so much effort and expense on Arch Cru, which after all was an investment, and so little on the Landsbanki Guernsey Depositors, who had their hard earned savings in a Guernsey Bank.

Guernsey Government release:

1 February 2013

Guernsey's Minister for Commerce and Employment and the Chair of Westminster's All-Party Group on Arch Cru Investments met in London this week to discuss progress towards the setting up of a mediation process.

Deputy Kevin Stewart and Alun Cairns MP agreed to continue to work closely with appropriate parties in order to support such a process being set up in the coming months.

Guernsey's Minister for Commerce and Employment, Deputy Kevin Stewart said: Click to read statement

Deputy Kevin Stewart

Guernsey's Minister for Commerce & Employment

Icelandic Government wins compensation ruling

28 January 2013 BBC News

Go to BBC site for full story, Click here

400,000 British and Dutch depositors were initially left out of pocket when Icesave collapsed

A European court has cleared the Icelandic government of failing to guarantee minimum levels of compensation for UK and Dutch savers in the collapsed Icesave bank.

Icesave, run by the Icelandic Landsbanki, collapsed in 2008 along with all of Iceland's banking system.

The UK and Dutch savers were bailed out completely by their governments.

The ruling may halt the UK's attempt to get all of its money back from the Icelandic government.

A spokesman for the UK Treasury said: "We note the judgment of the EFTA Court and will study it in detail."

The Icelandic government said it took "considerable satisfaction" from the ruling from the European Free Trade Agreement (EFTA) Court.


Landsbank Guernsey still left out in the cold

The News that EFTA has voted in favour of the Icelandic Government probably has little bearing on the plight of the Landsbanki Guernsey Depositors who have received no Political or financial help at all from their own Government. No Help at all from the UK Government. No help at all from the Guernsey Financial Services Commission ( Too busy covering their own tail). In fact Deloittes are the only people who have really achieved anything for them. At least the UK and Dutch Governments reimbursed their Icesave depositors in full at the time of the collapse. 


3rd January 2013

 Hector Sants, the man who led the FSA during the Banking Crisis is to receive a knighthood. A decision, which must appear unbelievable to the majority of those who lost money during that scandalous period of inefficiency, inept action and benign neglect by the Banks, the Financial Services Authority and the Guernsey Financial Services Authority, as well as others. This award for failure on the grandest scale ever known must be the final nail in the coffin of a totally discredited honours system for what amounts to failure and devalues this award to zero.


Just one area of this inefficiency was between the FSA and the GFSC in Guernsey over the Landsbanki Guernsey Fiasco where Guernsey depositors funds had been up-streamed to Heritable bank in the UK (A subsidiary of Landsbanki Islands hf, in Iceland), with the knowledge of the GFSC, a short while before Heritable went into administration. The FSA prevaricated over the return of the funds even though the return had been asked for well before Heritable actually went into administration, one might say deliberate delays until it was too late. The letters that passed between the FSA & GFSCwere demanded by the Treasury Select Committee, looking into the banking crisis and clearly showed misleading, ambiguous statements by the FSA.


This one example must be one of hundreds over a period of time which were mishandled or not acted on at all and to then knight the man with the overall responsibility during that period beggar’s belief.


Further article

by Alex Steger on Jan 03, 2013 at 10:33, Citywire, click here




Hector Sants


A further update from Deloitte 27th November 2012

91% appears probable without alternative claim

Read the update

The comments made below on the update frm 14th September 2012 are still just as relevent.


Landsbanki Guernsey

Comment following Deloittes latest update of 14th Sept 2012

Nearly four years from the collapse

Final recoveries lower than other Icelandic Banks. Why?


In their latest update Deloittes have made comments as to why the Landsbanki depositors recoveries

are lower than other Icelandic Banks. As shown in the article below, they state that this is for three

reasons, but have not elaborated on those reasons. This article takes each of those reasons and puts

a short explanation as to why Landsbanki Depositors have been treated differently to other depositors.

You might say they have been discriminated against.


The three reasons with comment by this site:


1.       A significant amount had been upstreamed to LIHF (Landsbanki Islands hf) (although this had been reduced by the introduction of the loan portfolio in April 2008) and recoveries on LIHF Article 113 claims are much lower than other Icelandic banks.

(Comment by this site): LGDAG (Landsbanki Guernsey Depositors Action Group) submitted a report to both Guernsey’s Government and the GFSC, as part of a call for a public enquiry. It contained an analysis of this upstreaming of funds from Landsbanki Guernsey Ltd (LGL) to Heritable UK, at a time when £36 M had been upstreamed to Heritable, and a further £12M to Landsbanki Islands hf, the mother company in Iceland. This upstreaming was well in excess of Basel 2 recommendations of 10% of assets. The report clearly identified a lack of proper due diligence by the GFSC regarding  Heritable’s ring fenced funds by  taking the vaguely worded statements of the FSA (UK Financial Services Authority), which were published as part of HMG ( Her Majesty's Government)special investigation into the failure of Icelandic banks and not making their own checks as to how liable Heritable was to Landsbanki Islands hf. (The letters between FSA & GFSC )  The annual reports from both companies clearly indicated that Heritable was only  viable due to a £200M line of credit from LIHF, i.e. without the line of credit Heritable would default. The only ringfenced funds were those placed into the property portfolio at Heritable.

All the above is clearly shown in the report submitted by the LGDAG which can be read by following this link.

2.        There has been no governmental support provided.

(Comment by this site): Neither Guernsey’s Government  nor the GFSC  made tangible efforts to help the Landsbanki Guernsey depositors. HM Treasury, despite its statutory obligation to represent the  Guernsey Government  in its negotiations with Iceland, apparently failed to do so . HMT focussed  on UK mainland savers and its own interests and  ignored those of British Islanders and Expatriates to whom it also owed a duty of care under its Crown Dependency agreements with Guernsey. Throughout the lengthy discussions between HMT and the Icelandic Authorities, the Guernsey Government consistently maintained that depositors were being represented by HM Treasury. It wasn’t until August 2009 that Guernsey’s Chief Minister, after pressure from the LGDAG, realised the HM treasury had in fact done nothing and a hurriedly arranged a trip to Iceland was organised, it achieved nothing of any benefit to the depositors. From then on the Landsbanki Guernsey depositors were ignored by Guernsey's Government.

Guernsey is the only Government in the western world not to have made good the losses in a collapsed bank domiciled in and regulated by that country.


3.       There was no depositor protection scheme in Guernsey at the time of the collapse of LGL.

(Comment by this site):Purely because Guernsey felt it was so well regulated it didn’t need one. The scheme was rapidly brought in the month after the collapse of LG but not made retrospective to assist the depositors. Even now it falls well short of the UK & European DCS, it is limited to £100M payment within a 5 year period and should a medium sized bank fail, depositors may not get back the £50,000, single or £100,000 Joint amounts covered.


Depositors at the end of the day are still only likely to receive between 87 – 91%, unless a legal case in Iceland is won which may improve that amount, but that is quite a big “If”.






Latest Deloitte update statement

14 September 2012


Final recoveries lower than other Icelandic Banks. Why?


1) A significant sum had been upstreamed to Landsbanki Islands hf.

2) There has been no Government support provided.

3) There was no depositor protection scheme in place at the time of the collapse.


Read the full update on the DeLoitte site


Icesave case to be heard in Luxembourg court

Simon Bowers. Guardian, Monday 17th September 2012

Iceland to defend results of two referendums in which taxpayers voted not to honour £2.35bn of UK investments lost in 2008

Icesave's implosion in October 2008, in the middle of Iceland's financial crisis, led to the UK Treasury stepping in to cover the losses of UK investors. Photograph: Jeremy O'Donnell/Getty Images

Efforts to force reluctant Icelandic taxpayers to pick up the bill for unhonoured deposit guarantees extended to hundreds of thousands of British and Dutch savers are to be heard in a court in Luxembourg.

Despite repeated attempts to reach a negotiated settlement for Icesave customers, Icelandic voters have twice rejected proposals to repay the British and Dutch governments in a national referendum.

In 2008 the UK Treasury was forced to step in and guarantee British retail deposits with Icesave, an online account offered by stricken Icelandic bank Landsbanki. The bank failed in the midst of a market-wide financial meltdown in Reykjavik that ultimately forced Iceland to seek a bailout from the International Monetary Fund.

Read full article


Landsbanki Guernsey

Depositors can only expect to recover between 87% and 91% of their deposits

over a number of years

without Guernsey Government intervention.

So far they have ignored the Depositors.

Its time for select committee

type inquiry into the GFSC handling of the whole affair to ascertain the truth


15th August 2012 By Rhiannon Davies


On the 6th of October 2008 the Guernsey subsidiary of Icelandic bank Landsbanki went into voluntary administration – apparently with the full knowledge and approval of the Guernsey Financial Services Commission.  The action resulted in many expat savers’ lives being ruined by Landsbanki Guernsey, as highlighted by the work of The Landsbanki Guernsey Depositors Action Group which is still fighting for the full return of monies for all those affected.


Read the full article on the EXPAT MONEY WATCH site by following the link below, its very well written.




9th July 2012

Deloitte have issued an update on their website.  They still expect the final recovery to be in the region of 87-91p in the pound. They will only be making one more payment which the hope will be before the end of 2012, and there should be an interim update sometime in the autumn. We are still awaiting results from legal actions in iceland, but hopes should not be held too high in this area.

Discussion can be found on the official Landsbanki depositors site by clicking the link at the top of the page.

Old Landsbanki to sue Price Waterhouse Cooper for deliberate auditing errors
March 2012.


The resolution committee of the failed Icelandic bank Old Landsbanki has subpoenaed the international auditing firm PriceWaterhouseCoopers, accusing the company of creating wrong annual accounts which misled the markets. The committee’s damages claim runs to hundreds of millions of krónur.

The subpoena is around 90 pages long, RÚV reports, and it claims that the misleading of markets about the strength of Landsbanki led to greater losses in the Icelandic financial crash than would otherwise have been the case. Landsbanki used PriceWaterhouseCoopers as its external independent auditors in the years before the crash.

The company is accused of having known about Landsbanki’s precarious position at the end of 2007, some nine months before it went under. It is also claimed that companies owned by Björgólfur Guðmundsson and his son Björgólfur Th. Björgólfsson, the largest owners of Landsbanki, were kept afloat with deception and overdraft loans.

The resolution committee calls into question how the bank’s 2007 report and its 2008 quarterly reports were presented. PriceWaterhouseCoopers is accused of having registered loans as much higher value and more secure than they actually were.

By the end of 2007 Landsbanki had loaned Eimskip, Icelandic Group, FL-Group and associated companies around ISK 200 billion. It is claimed that PriceWaterhouseCoopers auditors knew that the collateral behind those loans was generally either insecure or non-existent but decided, in collaboration with Landsbanki executives, to present the loans in quarterly and annual financial reports under false pretences.

If the independent auditors’ report had been accurate it is likely Landsbanki would have lost its operating licence at the end of 2007, it is claimed. In that event the collection of Icesave deposits in UK would have stopped and would never have begun in the Netherlands in spring 2008. The impact of the collapse would therefore have been smaller.

Resolution committee information officer, Páll Benediktsson, confirmed to reporters that the subpoena has been issued, but said little else. The case against PriceWaterhouseCoopers is set to hit the Reykjavík District Court on 21st June.

Iceland PM during Iceland crisis to stand trial


5th March 2012

Geir Haarde, the former Icelandic Prime Minister, is to go on trial on charges of negligence during the 2008 financial crisis.

Haarde is accused of failing to ensure financial safeguards were in place in the build-up to the failure of three of the country's biggest banks, including Landsbanki.

Landsbanki was the parent company of Icesave which failed in 2008 leaving thousands of people in the UK, Netherlands & Guernsey without their savings. Whilst savers in the UK and Netherland have now received their savings back in full, Landsbanki Guernsey Depositors, after three years , are still 15% out of pocket. Guernsey had no Depositor Compensation scheme in at the time, and its current scheme brought in on the back of the crisis, is far from the European standard.


A compensation dispute, which saw the UK's then Prime Minister Gordon Brown accuse Haarde of "illegal" behaviour, has yet to be resolved.

Haarde rejects the charges.



Guernsey Banking deposits down again

1st February 2012 

Total deposits held with Guernsey banks at the end of December 2011 decreased 5.8% in sterling terms by £6.7 billion from the end of September 2011 level of £114.2 billion, down to £107.5 billion. This is 3.1% lower than the same time a year ago.  Total assets and liabilities decreased by £5.9 billion to £133.6 billion representing a 4.2% decrease over the quarter although this was just 0.4% lower than the level a year ago.


The Policy Council respond in writing to Deputy DeLisles

Questions on Landsbanki

13 dec 2011

Would not the depositors in Landsbanki Guernsey not have been better off if the States of Guernsey had backed them as secured creditors like the British and Dutch governments did?

Of course the depositors would have been better off because they would have been reimbursed 100% of their money immediatly had the States of Guernsey Stood in their shoes. The States would have already been reimbursed 85% of the money they had used and if the Chief minister is to be believed, when he stated to the States assembly on the 25th Nov 2011, that depositors were "likely to recover in excess of 90 pence in the pound, and I say in excess because I am aware that there are some commentators who have followed this closely who believe that that figure may in fact exceed 100%."  The States would have been likely to receive back more than 100% of the money that they had used to repay the depositors, who, after all were depositors in a Guernsey Bank regulated by the Guernsey Financial Services Commission, and Guernsey's world wide banking reputation would have been enhanced. That of course did not happen.

Their written response to Deputy DeLisles's question can be read here



Landsbanki Guernsey

Depositors can only expect to recover between 85% and 91% of their deposits

over a number of years

without Guernsey Government intervention.

So far they have ignored the Depositors.

Its time for select committee

type inquiry into the handling of the whole affair to ascertain the truth


Guernsey's Chief Minister once again shows his total disregard for


Landsbanki Guernsey Depositors


30th November 2011


Today in the Guernsey States Deputy DeLisle placed a number of questions to the Chief Minister Lyndon Trott asking what political actions had been taken, since the Chief Minister's visit to iceland in August 2009, to assist the Landsbanki Guernsey depositors get 'fair and equal treatment', an undertaking that the Chief Minister had informed depositors he had managed to get from the the UK Treasury early on in this process. 


His replies clearly show there has been no political pressure applied by Guernsey’s Government to assist the Landsbanki Guernsey Depositors, although he had given depositors the impression that political pressure was being applied right up to August 2009, ‘Fair and equal treatment’ was promised. All other Governments involved in the Collapse of the Icelandic banks assisted their depositors. Landsbanki Guernsey was regulated in Guernsey by the Guernsey Financial services Commission. Had they carried out their due diligence properly in 2008, all depositors would have , by now had 100% of their money returned, but both the GFSC and Guernsey’s Government have hidden behind the’ Promontory report’ and dumped the depositors  keeping them at arm’s length.  This is not the way an allegedly well regulated , offshore low Tax jurisdiction should behave to its depositors.


An audio of the questions asked by Deputy DeLisle and the Chief Minister's replies can be heard here. 


A transcript will be placed on the site when it becomes available



Landsbanki savers were no different

A letter to the Guernsey Press printed on the letter’s page 21st Nov 2011


IN REPLY to semi anonymous, I am sorry if the irony of my letter, regarding saving with Guernsey banks, passed you by.
That, or you are not fully appraised of the full facts of the Cheshire/ Landsbanki Guernsey Ltd scandal that failed under the regulation of the GFSC. If so, you would be in good company, as more than 75% of our deputies know nothing beyond the propaganda put out by the Policy Council with regard to the position of people who held money in a legitimate Guernsey institution.
However, you have, without realising, given the Cheshire/ Landsbanki savers the legitimacy that was legally and morally due to them. The people of Guernsey, egged on by the spineless Policy Council, called us greedy for having money in a
legitimate Guernsey- registered and -regulated bank, yet, as you state, there is no difference between the prudent saver with other Guernsey- registered and -regulated banks and the prudent saver who had their savings bonds locked into a bank without any say in the matter, as to Landsbanki taking on the Cheshire book, yet constantly reassured by John Roper — where is he now? - that banks in Guernsey were too well regulated to fail. The difference today Is, I am giving all savers in Guernsey banks the heads up as to the precarious state of their savings. You do not believe me? Ask the Policy Council/GFSC, if Guernsey banks were to fail, would a saver with £50,000 be guaranteed to get all their money back? Ask for the reply to be put in writing. The answer would be no. Ask if a  

saver with £10,000 would be guaranteed to get all their money back. Again the answer would be no. There is only £100,000,000 in any five-year pot. The liabilities would far exceed that sum and so each saver would only get a proportionate amount as it has to be shared equitably with regard to the capital deposited. Today it has been reported that Lloyds is likely to suffer a further ratings downgrade — each time this happens, it costs more to service their exposure to debt and thus comes one step closer to failing. Rather than deride the Guernsey saver, I am voluntarily doing what the GFSC should be doing — Warning people that saving with Guernsey- regulated institutions can ‘seriously damage your wealth’.

Janson Bewey

Guernsey Finance leaps to the defence of deposit protection scheme

Guernsey press 22nd Nov 2011

That’s not what 1600 Landsbanki depositors think. The daily Mail was exactly right as a depositor’s letter shows, to the left of this article.


GUERNSEY FINANCE has said the island’s deposit compensation scheme is robust following criticism in a national newspaper article.
A piece in the ‘This is Money’ section of the Daily Mail said offshore compensation schemes were often ‘more complex, less generous and, possibly, less reliable’ than the UK Government
But Guernsey Finance chief executive Peter Niven said: ‘In terms of the deposit compensation scheme, we believe, having canvassed the industry, that the scheme is robust for the business that we have here in the island despite the cap-’
The Daily Mall article highlighted the fact that Guernsey scheme covered deposits only up to £50,000 and had a cap of  £lOOM
. that could not be exceeded in any five-year period. The UK scheme covers deposits of up to £85,000 per person in each bank or Institution where they hold an account.
- The article also quoted two financial experts who said the incentive for UK customers to put their money m offshore accounts had disappeared because they were no longer offering high interest rates.
But Mr Niven said there were still good reasons for UK savers to use these accounts.
‘With interest rates at all-time lows there is little for individual savers in the UK to gain from a basic offshore account but there are other products yielding higher rates which could be advantageous as long as any deposits held offshore are declared for tax purposes.
‘The benefit is still there for UK expats to maintain their accounts offshore while they are abroad and for wider wealth management services to provide a structure for their assets,’ he said.


10 November 2011


Guernsey's credit rating is downgraded from AAA to AA+


Guernsey's credit rating has been downgraded by the international agency Standard and Poor's from AAA to AA+.

The US-based ratings agency published its latest assessment on Thursday, amending its view of the Bailiwick's long-term economic stability.

It said: "We consider external vulnerabilities and monetary flexibility as credit weaknesses for the State of Guernsey."

Guernsey's treasury minister said it was down to a new method of assessment.

Deputy Charles Parkinson said: "The new technical scoring methodology does not work in our favour.

"Yet we have been given a high grade score of AA+, the highest rating that is achievable for us," he said.

Strong balance sheet

In its report, Standard and Poor's confirmed it had revised the way it grades sovereign jurisdictions.

It said this had been done in order to place greater weight on external economic influences over which there was limited control.

As examples, it cited "potential changes in EU regulatory and tax regimes".

However, the agency noted: "Guernsey's success in attracting foreign financial institutions, its prosperity and its very strong government balance sheet".

Landsbanki to Begin Payment of $11 Billion to Priority Creditors


Not Landsbanki Guernsey


By Omar R. Valdimarsson

Nov 17, 2011 3:09 PM GMT

The Landsbanki Islands hf winding-up and resolution committees said they are preparing to start interim payments of $11 billion owed to priority creditors of the failed Icelandic lender.

“Preparations for interim distributions are well underway,” the committees said in a statement on the lender’s website. The first payment will be made in a basket of the main currencies held by the bank such as euros, pounds, U.S. dollars and Icelandic kronur, according to the statement.

The committees said the bank had recoveries estimated at 1.35 trillion kronur ($11.5 billion) as of Sept. 30, exceeding the total 1.32 trillion kronur book value of priority claims, calculated at exchange rates as of April 22, 2009. The bank had the equivalent of 510 billion kronur in cash at the end of last quarter, or about 37 percent of priority claims.

Iceland’s banks defaulted on $85 billion at the end of 2008, as the government seized domestic operations in an effort to protect the $12 billion economy from total collapse. The local assets of Landsbanki, Kaupthing Bank hf and Glitnir Bank hf were taken over by the state, which created new banks.

Landsbanki’s failure triggered a diplomatic row with the Netherlands and the U.K., which both had to cover depositors in the lender’s internet accounts. The so-called Icesave dispute left about 350,000 foreign depositors in the lurch.

Iceland, which completed a 33-month International Monetary Fund program in August, will see its economy grow at more than double the pace of the euro-area average next year, the IMF said in September.




7th November 2011

It is now over three years since Landsbanki Guernsey collapsed and much water has passed under the bridge since then as depositors have struggled to get their savings back from this Guernsey registered bank.
The administrators Deloitte’s have so far managed to get 85% back for the depositors and are looking to get an eventual 91% for them.
Despite the efforts of the depositors and the administrators one has to question just what is it that both the GFSC and the States of Guernsey have achieved for the depositors other than point the finger in the direction of the administrators when confronted on vital issues.
The depositors, many of whom are Guernsey residents will not only be looking for responsible action from the Guernsey government when the eventual shortfall is established, but will also be seeking ‘transparency’ in just how well did Guernsey deal with this situation and what is it that they can do better, to prevent a further occurance.
Quite a number of depositors have died and will never see the eventual return of their savings, the most recent one a 94 year old Guernseyman.



and add your comments to that forum: click here


Depositors turn to poetry

on Guernsey Press forum

Ode to a Politician

He’s full of Huff and full of puff,
But doesn’t really know his stuff
Transparency is what he preaches
Not is what we hear in Speeches
Misleading statements more his style
Pompous with a smirk or smile
He promised treatment equal and fair
LG soon found it’s all hot air
Now silence for the past two years
Political failure will soon bring tears
If voters see through this shallow veil
Blank papers are all that will entail.

Tim R  6th Nov 2011



Dear Mr Trott
What have you forgot?
Landsbanki Savers
That is what

We’ll never go away
And always have our say
Landsbanki Savers
Hip Hip Hooray.


6th Nov 2011

landsbanki Depositors lose

Iceland priority bid

Guernsey press 03 November 2011


Liquidators for landsbankii Guernsey have been unsuccessful in a legal challenge attempting to give its depositors priority status for any payouts coming out of Iceland.......




and add your comments to the forum

Icelandic Depositors in

Guernsey, IoM, "disappointed

by latest ruling

International Advisor 1st November 2011




Add you comments to the forum.

Banking Victims should all be treated alike

Guernsey Press 4th November 2011

Police Coumcil response:

"The recovery of depositors' monies rests with the royal Court-appointed joint liquidators"


SAVERS who lost money with Landsbanki Guernsey should have been treated the same as other British victims of the Icelandic banking collapse, the depositors’ pressure group has said.


Statement By Landsbanki Guernsey Depositors Action Group

on Icelandic Supreme Court ruling.

Depositors denied priority status

2nd November 2011

A press release my Matthew Dorman on behalf of the Landsbanki Guernsey Depositors Action Group.


Landsbanki Guernesy Depositors react to Icelandic Supreme Court Legal Ruling.



·        Sovereign governments and Local Authorities given Priority status over Landsbanki Guernsey ltd (LGL) savers.

·        LGL creditors to get nothing.


The 28th October 2011 Icelandic Supreme court hearing judgement over claim status for creditors of the failed Landsbanki bank has ruled that sovereign governments will receive almost all of the money spent in bailing out UK based savers in Landsbanki’s Icesave accounts whilst those savers in Landsbanki Guernsey will receive nothing.


Matthew Dorman, a spokesman for the Landsbanki Guernsey Depositors Action Group (LGDAG) said that this decision ‘was all the more disappointing for Landsbanki Guernsey depositors in view of the fact that Guernsey “is part of the British Isles and as such, there should be an onus to ensure all British citizens and dependents are treated equally. This, in addition to the various statements made by the Chief Minister, Mr Lyndon Trott, where he asserted that he had assurances from HM Government that LGL depositors'  would receive “fair and equal” treatment indicates that someone has been misled in the 3 years since the bank was placed in administration.’


LGL, through its liquidator, Deloittes LLC had previously challenged the Icelandic court decision on claim status for both the wholesale deposits and the Icesave cases.  In respect to the former, the liquidator challenged the decision of the Landsbanki Islands hf (“LIHF”) Winding Up Board to award these wholesale depositors priority on the basis that (1) the Emergency Law was invalid; (2) wholesale 'deposits' did not fall within the scope of the enhanced protection provided for deposits by the Emergency Law. 

The Supreme Court of Iceland ruled that LGL (and other plaintiffs seeking to reduce the priority claimants) have been unsuccessful in their appeals.
One Supreme Court Justice had a dissenting view, concluding that Art. 6 of the Emergency Act no. 125/2008, cf. Art. 102 (3) of Act no. 161/2002 on Financial Undertakings, was a violation of the Icelandic Constitution, and therefore deposits should not be granted priority.
Following the decision of the Supreme Court, it is likely that the LIHF Winding Up Board will make a distribution to LIHF priority claimants and have announced that payments to the priority claimants will be made in a matter of weeks.  The only remaining avenue for those ordinary creditors ( Landsbanki Guernsey Depositors) now seems to pursue a claim in the European courts against the Icelandic government.
The Supreme court judgement decisions further indicate that the Guarantee provided by LIHF and which was widely used in LGL's promotional literature and within the Guernsey Financial Services Commission, (GFSC)  is expected to be valueless on the basis that there will be no assets available to pay out under the guarantee once all preferential creditors have been paid. As such depositors are not expected to have a viable recourse to LIHF.  The role of the GFSC in the bank failure, its reliance on other third parties to provide un-corroborated information and lack of basic regulatory due diligence has been called into question by the LGDAG previously and this once again shows the shortcomings of a professional regulatory body in ensuring that savers within its jurisdiction were protected adequately.
The savers in LGL will await updates from the liquidator as to potential further recourse but questions remain for

·        The Guernsey Chief Minister, (Lyndon Trott) who was either misled by HM Treasury or who sought to mislead savers by stating he had assurances from both the Treasury and the Icelandic government that LGL savers would be treated equally

·        The GFSC  ( Mr Peter Neville, Director General at the time)and their role in the bank's failure and the commission's lack of due diligence on the bank operation when it was clear that there were no ring-fenced funds to protect the bank's associated companies. Even without the ring-fenced funds which would have ensured that LGL savers received a full pay out without third party intervention, the GFSC allowed a significant part of LGL's assets to be transferred to its sister banks, far in excess of the Basel recommendations of 10%.

As LGL savers are the only ones who have had no support from the jurisdiction in which their savings were held, will the Guernsey authorities now make good the loss caused by the inefficiencies of their regulatory authorities and the promises made to savers by the Chief Minister, Lyndon Trott?

‘Was this court decision a political solution to allow Iceland’s application into the EU to proceed at the expense of Britain’s own citizens?  Will we ever know?’


Matthew Dorman

For and on behalf of the LGDAG.


Deloittes latest update: click here


For the Supreme Court ruling: Click here


7th October 2008  -  7th October 2011

Landsbanki Guernsey, 3rd Anniversary of a Guernsey regulated bank going broke.

1600 Depositors are still owed 15% of their hard earned savings.


A Landsbanki Guernsey depositor expresses his feelings


Submitted 7th October 2011


For all you greedy investors in the following banks listed below; some of which are registered in Guernsey and hold the investments of Guernsey people beware. They were downgraded last week due to their financial instability and the state of the Eurozone and world economy.


The downgrades include a two-notch cut for government-controlled RBS, to A2 from Aa3, and a cut of one-notch, to A1 from Aa3, for Lloyds TSB, a division of part-nationalised Lloyds Banking Group.


Spanish bank Santander had its UK business downgraded by one notch, to A1 from Aa3, while Nationwide Building Society suffered a two-notch cut, to A2 from Aa3.


Other institutions downgraded were Co-operative Bank, and the building societies Newcastle, Norwich & Peterborough, Nottingham, Principality, Skipton, West Bromwich and Yorkshire.


Whilst those saving directly with the UK parent company will be covered by the fully funded, government backed compensation scheme; those registered with their Guernsey subsidiary will have to rely on the under-funded ‘Walt Disney’ Guernsey compensation scheme which cannot even pay out the maximum of £50,000 compensation if even one bank went under.


Those of you who derided the Landsbanki Guernsey savers and showed no compassion to the plight of those whose savings were locked in to the ‘Mickey Mouse’ bank the GFSC approved, lauded and allowed to trade under a misrepresentation when they took over our Cheshire accounts, should now take fright. You were saved last time when the British taxpayer bailed out those of you investing in the failed RBS/NatWest; LloydsTSB and Northern Rock banks whilst the shameful Guernsey Government and the people of Guernsey did not reciprocate with the failed Landsbanki Guernsey bank: you will not be saved this time. The smaller banks/building societies will be allowed to fail and the larger institutions will be nationalized and the relevant compensation schemes activated. The UK will let Guernsey sort out its own mess with the Guernsey Ltd subsidiaries.


With a Guernsey compensation limit set at £50,000 per investor with an, as yet under-funded, capitalization of £100,000,000: it isn’t rocket science to see that with the smallest institution over here being capitalized at £200,000,000; not only will you have no hope of receiving the maximum compensation if it goes bust: any further investor with another bank that were to follow would get nothing.


So sleep easy greedy investors, do not say you were not warned. I know the GFSC should be warning you of this but why should they when they got away with it last time? What do I do some may ask? Get your money out and buy a big strong box. At least you have had warning.

Janson Bewey

Ommadawn, Rue Colin, Vale.



The Two people who totally failed the depositors



Mr Peter Neville

The Director General of the Guernsey Financial services at the time of the collapse of Landsbanki Guernsey.



Deputy Lyndon Trott

Guernsey's Chief Minister at the time of the collapse of Landsbanki Guernsey

Icesave liquididators find money to compensate UK savers

Liquidators appear to have found enough assets to compensate foreign customers


But will that include Landsbanki Guernsey and what is Guernsey's Government

doing to pressurise the Icelandic Government to include the Landsbanki Guernsey

 depositors in any repayments?


It is not clear from the article if the likely compensation only refers to priority creditors


Rowena Mason writes in the Telegraph 2nd Sept 2011




.....................In fact, the bank has more than double the assets needed to compensate foreign depositors from Britain and the Netherlands, according to the latest report from the bank's resolution committee. Its new calculations are based on the fact that the liquidation of assets is raising more than it had predicted.

Arni Pall Arnason, Iceland's economy minister, told Bloomberg on Friday: "These simple facts should change completely our understanding of the old Icesave dispute. There is nothing to dispute any longer."

Iceland's banking system collapsed and its currency went into meltdown in October 2008. It is now recovering, after a three-year austerity programme imposed by the International Monetary Fund in return for a bail-out.

Earlier this month, Iceland raised its interest rates for the first time since the economic collapse.

Read full article



Former Icelandic Prime Minister facing Jail for his role in iceland's financial crash 


Trial of Geir Haarde begins as prosecutors seek accountability


By Sean Farrell in Reykjavik

Tuesday September 06 2011



Geir Haarde, the Icelandic prime minister between 2006 and 2009, appeared in a special constitutional court in Reykjavik yesterday on charges of "failures of ministerial responsibility" during the 2008 financial meltdown.

Geir Haarde heads a cast of hundreds who could face prosecution for their part in Iceland's financial implosion.

Iceland's special prosecutor Olaf Hauksson has named more than 200 suspects in his criminal investigation into the country's financial crisis.



Deloitte update


24 August 2011


The legal battle in iceland for Landsbanki Guernsey depositors goes on. You can read the latest Deloitte update by following the link below


Deloitte update



Landsbanki Guernsey

Depositors can only expect to recover between 85% and 91% of their deposits

over a number of years

without Guernsey Government intervention.

So far they have ignored the Depositors.

Its time for select committee

type inquiry into the handling of the whole affair to ascertain the truth

Iceland set to pay back British debt 'in months' following massive sale of retail stakes

21st August 2011

The above headline appears on the "This is money website" and can be read at: READ ARTICLE


Landsbanki Guernsey Depositors are not part of it.

But of course this only refers to the UK and Dutch Governments who bailed out their depositors in full.

The 1600 Landsbanki Guernsey Depositors were not so lucky and Guernsey's Government totally ignored them, leaving them to the Administrators/Liquidators to sort out the mess as best they could and to be fair the administrators have done a fairly good job so far. Guernsey's Government should now be pressurising Iceland on the political front to ensure that if all of these assets are sold, then the Landsbanki Guernsey Depositors are not forgotten. About £14 Million of their deposits were upstreamed to landsbanki in Iceland from Heritable and these funds also need to be repaid to the Landsbanki Guernsey depositors.

Landsbanki Guernsey depositors were told from the very start by Guernsey's Chief Minister Lyndon Trott that The UK Treasury were representing Guernsey's interests in Iceland, this proved to be incorrect and the only people the UK Treasury were representing were the UK Government interests, as the Isle of Man also found out as they were in the same boat with Kaupthing Singer & Friedlander. 

So far Landsbanki Guernsey Depositors have been very badly treated by the Guernsey Government. Landsbanki Guernsey was a Guernsey Regulated bank, regulated by the Guernsey Financial services Commission and part of the blame for its collapse has to rest with both the GFSC and Guernsey Government.

It will be three years on 7th October 2011 that Landsbanki Guernsey Collapsed, depositors are still owed 15% plus interest of their money and Guernsey's Government should be pressing Iceland for equal treatment for Guernsey Depositors in the repayment of money by Iceland to the UK & dutch Governments. 

Yorkshire Bank to exit Guernsey

International Advisor 6th August 2011


Yorkshire Building Society, the UK’s second-largest building society, is to “wind down” its Yorkshire Guernsey Ltd subsidiary, the company announced this morning.

In a statement on its website, the building society said the decision followed a “full strategic review” that was launched last year, in light of changes in the regulatory regime in the UK.

“The review considered a number of options, including a potential change in [the Guernsey operation’s] legal status, sale to a third party or an orderly wind-down of its operations,” the building society said.

“Regrettably, after very careful consideration, it has been concluded that a process to wind-down the company’s activities should begin.”

International Advisor READ ARTICLE

Also articles in , Telegraph online,    Yorkshire Post,     Tax news.Com,       BBC news










20th August 2011

Guernsey Depositors Compensation Board have released their Annual report up to 31st December 2010


See Guernsey Depositor Compensation page




landsbanki Exec. sentenced to Jail

Guernsey connection

4th July 2011


Haukur Thor Haraldsson, a former employee of Landsbanki, was yesterday sentenced to two years in prison for embezzlement.

Haraldsson’s lawyer said the decision of the Reykjavik District Court came as a surprise.

Haukur Thor Haraldsson worked as managing director for Landsbanki and was charged with having transferred ISK 118 million (EUR 708,750 at today’s rate) from NBI Holdings’ account to his own on the 8th October 2008. The transfer happened just two days after the Icelandic banking crash became evident.

The company NBI Holdings was registered to a private investment firm in Guernsey under Haraldsson’s supervision.  Haraldsson claimed he had made the transfer to prevent the money from being swallowed up in the bankruptcy. He claims to have not made the transfer in secret and that personal profit was never his intention.

This was the second time the Reykjavik District Court had ruled on the same case against Haraldsson. The first time he was declared not guilty; but the Supreme Court of Iceland nullified the decision and sent it back to the district court for a re-trial.

Gestur Jonsson, Haukur Haraldsson’s defence, told that the decision took him by surprise — especially as one of the judges in the case had judged the defendant innocent last time around. He added that the decision will of course be appealed; but Haraldsson already has an ISK 4 million legal bill to pay — and at present a jail sentence as well.


















Islanders plea to Osborne over Icelandic Bank Losses

Landsbanki Guernsey depositors in similar Position

31st May 2011

Although the article below and linked to refers to the Kaupthing Singer & Friedlander depositors it could just as easily apply to the Landsbanki Guernsey depositors and there is nothing to stop either the Guernsey Government or The UK Government setting up a similar trust to repay the depositors the 15% still owed to them. Guernsey's Chief Minister Lyndon Trott has already publicly stated in a Guernsey States Meeting that commentators have said that depositors are likely to get back more than 100% of their deposits, although the time scale has not been mentioned. That would mean no risk for government who would eventually get their money back and the process would enhance their international reputation no end.


The full article is from the London Evening Standard by Lucy Tobin on the 31st May 2011


Read the article


Landsbanki Guernsey

Depositors can only expect to recover between 85% and 91% of their deposits

over a number of years

without Guernsey Government intervention.

Its time for select committee

type inquiry to ascertain the truth

A Landsbanki depositor writes to Iceland

Copied to all Guernsey deputies

He certainly won't get any help from Guernsey's Government.

26 April 2011



Would you like to share the experience of your latest visit to Iceland with other readers? Would you like to comment on a recent news story? 

This is your platform. Please email all letters and comments you would like to see published on this website to with the subject headline "Letters/Comments." Please include your name, home town and country.

Please note that the comments published on this website do not necessarily reflect the opinion or policy of Iceland Review Online.

April 26 | Icelandic Banks

Dear Eyglo,

I would just to follow up some other letters from people who saved in Icelandic Banks.

I moved from England to Malta to retire somewhere warm because of ill health.

One of the first things that happened was that I was told that I could no longer save in UK banks because I was no longer a resident.

So, I put my savings in Landsbanki Guernsey - which was formerly the Cheshire Building Society. The interest rate was not the highest but it had a long term savings account which I thought would leave me worry free for 5 years. Many residents of Guernsey saved there too. I am not a greedy investor - just an ordinary saver suffering from ill health - and also an ordinary tax payer.

Imagine the distress I and my fellow savers suffered when Landsbanki crashed!! Imagine how much worse this was when we discovered that no Governmental body anywhere had any interest in our predicament.

Now we see that UK, Dutch and Icelandic savers have all been bailed out by their governments - BUT NOT US!

Furthermore, we see that under Icelandic law, we ordinary savers who should surely be protected above risk taking investors, large institutions, and national governments are given the lowest possible priority, and therefore will likely receive nothing from the sale of Lansdbanki assets - unless a legal appeal is successful.

This whole situation seems to me and my fellow savers to be entirely immoral. Our perception is that we have been robbed!

Unfortunately, some of our savers have died since the crash, and they have done so as unhappy victims.

I do hope on behalf of we savers who remain that Iceland will do the decent thing and make sure that we ordinary savers are looked after first.

Best regards.

Charles Downing, Malta


A Guernsey Deputy responds

27th April 2011

From: Peter Sirett

To: Gary Blanchford & all Guernsey Deputies

Date: Wednesday, April 27, 2011 7:20 AM

Subject: RE: A landsbanki Depositor writes to Iceland.



Mr. Downing is being disingenuous by failing to state in his letter that he has actually received the vast majority of his funds back from the administrators of Landsbanki Guernsey.  Reading the letter one is led to believe that he and his fellow depositors lost everything and are laying the blame squarely on the States of Guernsey. If your organisation wants fair play then I suggest you should start playing fair.


Ps I do not normally “reply all” but I think it is merited in this case.


From: Gary Blanchford

To: Peter Sirett & all Guernsey Deputies

Date: 27th April 2011



Mr Downing is an individual Landsbanki Depositor, the LGDAG always quoted the amount already returned (85%), but Mr Downing is quite right in everything he says. Money returned has been entirely due to the Administrators and depositors ( the LGDAG represent over 300 ) firmly believe that Guernsey's Government and the GFSC come out very badly in the lack of any form of assistance during the past two and a half years.


In fact ,what political pressure is being put on Iceland at present by Guernsey Government to ensure priority creditor status is ensured for the Landsbanki Guernsey Depositors, ( UK Treasury are useless, they led the Chief Minister up the garden path in the early days) like the UK & Dutch Governments who have never ceased their negotiations with Iceland, of course they paid their depositors back in full, so are claiming on their own behalf. Guernsey sat back and did nothing.


Gary Blanchford

Deputy Chairman or LGDAG

New update on Deloittes website


Landsbanki Guernsey Limited (in Compulsory Liquidation)

14  April  2011


Update in respect of Icelandic position and litigation

The LIHF Resolution Committee announced on 20 February 2009 at the first formal creditors meeting that retail and wholesale depositors of LIHF were expected to be treated as preferential creditors under the terms of the Emergency Law passed on 7 October 2008 just prior to LIHF being placed into administration.  This priority excluded intercompany depositors including amounts owed to LGL and amounts potentially due to other creditors of LGL (such as LGL depositors who made a claim against LIHF under a guarantee).


Read More


Landsbank Guernsey liquidator fights Icelandic court decision


Added 19 April 2011  International Advisor.

The liquidators of Landsbanki Guernsey have appealed against an Icelandic court decision that would mean savers in the collapsed Channel island bank were likely to get none of their money back.

A statement released by Deloitte - one of the Landsbanki Guernsey joint liquidators - said it was challenging the ruling of the District Court of Reykjavik that gave preferential status to what are termed British and Dutch wholesale depositors. These are local authorities, universities and other institutions.


UK and Netherlands to sue Iceland over lost deposits


BBC News online 10th April 2011


The UK and Dutch governments are preparing court action against Iceland to recover 4bn euros (£3.5bn) lost when the country's bank system collapsed.

It follows a referendum in Iceland which rejected a repayment plan.

The UK said it was "disappointed" by the "no" vote, while the Dutch finance minister said the time for negotiations was "over".

Iceland's Finance Minister Steingrimur Sigfusson said that resolving the row in court would take at least a year.


                                                                  READ ARTICLE



Landsbanki Guernsey

Depositors can only expect to recover between 85% and 91% of their deposits

over a number of years

 without Guernsey Government intervention.

Its time for select committee

type inquiry to ascertain the truth.

Guernsey retail bank deposits drop

25 March 2011

Bank deposits fell by 5.4% over the year in Guernsey’s 38 licensed banks, however, in what Guernsey director of banking Philip Marr noted was a “continued ultra-low interest rate environment”.


The year also saw two Guernsey banks surrender their licences: Northern Rock (Guernsey) Ltd, which completed its orderly wind-down plan in 2010, and Landsbanki Guernsey Ltd, which the Royal Court of Guernsey last year agreed to allow to liquidate, following its collapse in 2008 and  subsequent period in administration.


It must also be taken into consideration that Guernsey has retained it Depositor protection  at, up to £50,000, with a maximum of £100M payout in any five year period, whilst The EU, UK and Gibralter have all increased their cover to £85,000 payable within within seven days with no cap. So Guernsey retail depositors are distinctly disadvantaged and there is a trend to move money to the UK.


The Guernsey scheme as people will remember was only introduced as an afterthough after Landsbanki Guernsey had already gone into administration on the 7th October 2008, the scheme was brought in during November but not back dated for the depositors.


Collapsed Icelandic bank Landsbanki faces Serious Fraud Office inquiry

26th March 2011


The Serious Fraud Office has widened its investigation into the collapse of the Icelandic banks to include Landsbanki, the institution that went bust owing UK savers £2.3bn.


The news comes just weeks after the SFO arrested entrepreneurs Vincent and Robert Tchenguiz as part of an investigation into the collapse of Kaupthing. The brothers deny any wrongdoing.

The SFO’s investigation into Landsbanki is understood to be focusing on the days and weeks leading up to the collapse of the bank in October 2008. Investigators are said to be keen to track the movement of funds, much of them generated through the bank’s UK subsidiary Icesave, prior to the bank being taken over by the Icelandic government.



New update from the Liquidators, Deloittes


17 February 2011


As previously noted in the Joint Liquidators’ letters to depositors dated 15 December 2010 and 25 January 2011, the Joint Liquidators made the decision to adopt the Exchange of Information (“EOI”) basis early so that distributions could be made to all depositors without the deduction of retention tax.  As tax is payable on all interest amounts included in the admitted claim and ring-fenced interest received (as shown on the 19 January 2011 statement issued to depositors), it is likely that depositors would suffer tax on interest which may ultimately not be recovered.  As such, the Joint Liquidators took the view that it would be beneficial for depositors to receive amounts gross of tax and that the treatment of interest received can be taken up with each individual’s home tax authority.


To read the full article follow the Deloittes updates tab at the top of the page.


A Landsbanki Depositor summarises the last 2.5 years

14 march 2011


85% of savings repaid to date / expected max final recovery of 91%  Fourth repayment of 17.5p in the £ made February 2011 bringing total repayments to date of 85%. Final payment anticipated late 2011 early 2012 of between 87 and 91p in the £ 


Lack of States action in supporting depositors - Whilst UK (and other governments) repaid savers with failed Icelandic banks and took action against Iceland to repay lost savings, the States of Guernsey offered no real support – Chief Minister told deputies that he would deal with the Landsbanki situation in conjunction with the Administrator. The States have particularly let down many older & OAP depositors who were in desperate need of financial support – a number of whom had died waiting for their savings to be repaid.   Latest press reports indicate that Iceland to repay UK Government  > £3bn to cover prepayment of UK based savers with Icelandic banks – why did not the States of Guernsey work together with UK Government when problems identified? 


                                       Read the whole summary


Guernsey's Chief Minister Lyndon Trott is accused of misusing his position

to promote a private finance Company

11th February 2011

In an email to all Guernsey Deputies Mr Gary Blanchford, a resident of Guernsey, informs them that he has received information from Chile that the Guernsey Chief Minister had been seen in the Country on the 9th February 2011 in what appeared to be a private visit with a Guernsey Financial Company, Concept group Ltd on which the Chief Minister is a Non-Executive Director. It was reported that he had been using his position to help promote the Company, that invitations sent out for presentations, introduced Lyndon Trott as Chief Minister of Guernsey and during presentations, Mr Roger Berry ,the managing Director of the Company, introduced him as Chief Minister of Guernsey. Mr Blanchford has said that in his opinion this is a totally unacceptable situation and appears to be a complete conflict in interests with his duties as Chief Minister.


Since the above information was received it has come to notice that a similar trip took place to Kuala Lumpur in Malaysia on the 11th November 2010 with a similar format and with invitations being sent out introducing Lyndon Trott as Chief Minister, but failing to identify his role as a Non Executive director of the Concept Group.

Mr Blanchford has submitted a report to the Guernsey Code of Conduct for Members of the States of Deliberation ( Guernsey's Government), which will be considered by its Chairman as to whether it should go before the Panel.


21 Feb 2011, Mr Berry, Managing Director of the Concept Group Ltd has stated,(through a third party) that it is not the case that he introduced Lyndon Trott as Chief Minister. Mr Trott is never introduced by Mr Berry as the Chief Minister but simply (as he is) as a director.


Landsbanki Guernsey Depositors will continue the fight for the return of 100% of their deposits

International Advisor 4th February 2011

Helen Burggraf


Gary Blanchford, deputy chairman of the Landsbanki Guernsey Depositors Action Group, which represents several hundred of the bank’s depositors, said the depositors welcomed the news of a better-than-expected result by Deloitte, but stressed that they intended to “continue the fight to regain 100% on their deposits”.

“As far as they were concerned their money was deposited, not invested, in a bank regulated by the Guernsey Financial Service Commission, and they blame a lack of due diligence by the GFSC as the reason for losing their money,” he added, and repeated the group’s call for an independent inquiry.


Read full report


A Landsbanki Guernsey Depositor analyses the IMF report in its connections with the GFSC and Landsbanki Guernsey


Mark Ashbey a Landsbanki Depositor, having read the IMF report on Guernsey, realised that the report showed fairly clearly that the Guernsey Financial Services Commission was apparently failing in many aspects of its duties in the run up to the putting of Landsbanki Guernsey into Administration on the 7th October 2008




Deloittes update

Landsbanki Guernsey Limited (in Compulsory Liquidation)
25 January 2011

Update from the Commissioner’s Meeting held on 19January 2011

The Joint Liquidators are pleased to confirm that, following the adjudication of claims by the Court appointed Commissioner on 19 January 2011, they will be making a Cumulative (i.e. including all part payments) Interim Distribution to ordinary creditors of 85 pence in the pound and 100 pence in the pound for preferential creditors (subject to expiry of the warranty period and receipt of the proceeds in respect of the sale of the Heritable debt (see below)).





Guernsey:IMF is saying, right paperwork in place, but little inclination to use it.

LOW-TAX critic Richard Murphy has hit out at Guernsey’s efforts in combating money laundering.
The Tax Research UK founder has responded on his website to the findings of the International Monetary Fund and its assessment of the island’s stability as a finance centre.
Mr Murphy said the report, which showed that there was a ‘disconnect between the number of money laundering cases Investigated locally and the number of prosecutions, showed that claims Guernsey had to being well regulated were ‘utterly hollow’, despite the report being largely positive about its financial supervision. 

The above report also equally applies to Guernsey's Depositor Compensation Scheme, where although to all intense and purpose the scheme was in place from 2008, the fact was that Guernsey's Commerce and employment had done little or nothing to ensure the scheme moved forward and not a penny had been paid into the prefunded scheme in those two years by the Banks. To extricate themselves from this mess Commerce and Employment came back to the States of Guernsey late in 2010 and had the scheme changed to Post funded, but to date (28 Jan 2011) The Guernsey DCS website still says funded by annual payments from the banks. 


Read the comments in the article immediatly below on IMF report, the Banks and the GFSC.



IMF make comments on Guernsey's

Depositor Compensation Scheme

in their December 2010 report



Read between the lines on the IMF report on banks and the GFSC 

of 16 December 2010

It appears that the GFSC was not fit for purpose during the early part of 2008 and in the lead-up to putting Landsbanki Guernsey into administration. It is only since that Financial Crisis that The GFSC has started to get its house in order and impliment regulations that cover its mistakes in 2008 and may stop the same thing happening again.

Unfortunately the Landsbanki Guernsey Depositors have been the victims of those mistakes.


and draw your own conclusions

 Results of Guernsey Royal Court Commissioner's sitting on Landsbanki Guernsey in liquidation.

  19th Jan 2011  

A commissioner's meeting for Landsbanki Guernsey Depositors was held in the Guernsey Royal Court this morning. It was presided over by the Liquidation Commissioner  Mr Richard Collas.

The basic result of that meeting was that instead of the 7.5% repayment that depositors were expecting, extra funds have been realised and depositors can now expect a payment of 17.5%, bring the total that will have been returned to 85%, this should be ready for payment from the 7th February 2011. The Liquidators latest projection now for final payment over an undefined time scale is now set at between 87% and 91%.

Those are the basics, but ICC member Peter Cantle has prepared a summary of all the proceedings this morning and that can be read at the link below.




Icelandic Banking Chief's arrested


14th January 2011


Two former senior executives of Iceland's failed Landsbanki bank have been arrested over allegations of market manipulation.

Ex-Landsbanki chief executive Sigurjon Arnson and Ivar Gudjonsson, the bank's former head of corporate finance, were ordered to be detained in connection with the institution's collapse.

Landsbanki and Iceland's other banks collapsed in 2008 under the weight of enormous debts accumulated during the country's boom.

Arnson and Gudjonsson are among seven executives sought for questioning about the bank's collapse.

A court in Reykjavik is due to rule on their continued detention.



IMF Urges Guernsey to Step Up Fight Against Money Laundering

Jan 14, 2011 3:34 PM GMT


The International Monetary Fund said it is concerned about the way Guernsey implements its money- laundering rules, saying there is a “disconnect” between cases that are investigated and those eventually prosecuted.

The British Crown dependency needs to bolster rules to prosecute foreign money launderers and expand the list of “high-risk customers,” the IMF said in a report published in Washington today.




Elizabeth Castle dies aged 99
Sadly, Elizabeth Castle, aged 99, died at 11am on Saturday 1st January, 2011 at the King Edward VII Hospital in Guernsey.
Elizabeth was the oldest known Landsbanki Guernsey depositor and became an icon for the Action Group through her determination to make a contribution in helping the group to fight for the return of their lost savings.
At the age of 97 and housebound, she completed two film documentary interviews in order to express her own views on the collapse of the Icelandic bank.
Despite her failing physical health, Elizabeth always adopted a very positive attitude to life, albeit that she had potentially lost her life savings.
All of us were touched in some way by Elizabeth, a remarkable lady who will always be remembered with great affection and gratitude by our group members. 

A habenae ut exuviae secundum specialis est non dignus suus populus

A government that hides behind secrecy is not worthy of its people.



Elizabeth on her 98th Birthday in 2010

Trott lays blame for misinformation firmly at Commerce &Employments door

Guernsey Press 24th December 2010

"The compensation scheme was a matter for Commerce & Employment and it was the departments advisors who would have checked the accuracy of the prepared response given in the States."



A second article with comments


Landsbanki depositors are still waiting for a reply on his last bit of misinformation, re "commentators say depositors may get greater than 100%.

I wonder who gave him that response? 

Read the e-mail sent to all Deputies


Lets hope he's more on the ball as he travels the world shaking hands, he certainly hasn't been when it comes to helping Landsbanki depositors.








Guernsey’s Chief Minister says, that Commentators inform him that Landsbanki Guernsey Depositors are likely to get back greater than 100% of their losses.


A strictly mathematical goes like this:

What Makes 100%? What does it mean to give GREATER than 100%? Ever wonder about those people who say they are giving greater than 100%? We have all been to those meetings where someone wants you to give greater than 100%. How about achieving 103%? What makes up 100% in life?

Well Read on



Increase in UK's deposit compensation scheme

 leaves Guernsey savers disadvantaged

Guernsey may face an exodus of savers now that the UK mainland has increased its deposit compensation to £85,000 - almost double what is available on the Channel Island.

Telegraph online 23rd december 2010










Guernsey's Bailiff light-heartedly hits the nail on the head.

" I asked if there was a single thing in Guernsey that was not taxed." he said, "The brainpower of politicians."

He said, "If they did tax it, they would have to give a rebate."


Whilst we would not suggest for one moment that the Bailiff was intimating anything more than light humour at the expense of Guernsey politicians, reading the article to the right and the articles below, it really makes you wonder if the light humour had a deeper meaning for certain Guernsey politicians.

Bewildering Statement by Guernsey's

Commerce and Employment Dept.

The following Statement was read out by Radio Guernsey this Morning as part of their News item.

Commerce and Employment says that while it monitors international developments in this area, Guernsey banking industry is significantly different to that in the UK and EU member States  and doesn’t plan to follow suit.

This is of course is in response to the email sent to all Guernsey Deputies regarding the the UK FSA's Press release involving an increase in their Depositor Compensation from £50,000 to £85,000 to be paid within seven day of a bank going down, which is coming into force on 31st December 2010. According to the Chief Minister's statement in the States Assembly in September, this was unlikely to come in within three to seven years, which shows how on top of the situation they really are. It was the Landsbanki Guernsey depositors Action Group that brought it to attention some months ago.

Commerce and Employment state:

"Guernsey Banking industry is significantly different to that in the UK and EU member states."

How is it different?  Depositor protection schemes are designed to protect the depositor in a retail Bank and those depositors are the same whether they be in Guernsey, the UK or in Europe. Commerce & Employment appear to have missed the point totally.

European Commission  Internal Market and Services Commissioner Michel Barnier said in July 2010: "The adoption of today's package (speaking of the upgraded scheme being introduced on 31December 2010) marks the Commission's latest endeavour to bring transparency and responsibility to Europe's financial system in order to prevent and manage future crises. European consumers deserve better. They need reassurance that their savings, investments or insurance policies are protected no matter where in Europe they are based.





Guernsey Gazette Officielle

Notice to Creditors

15th December 2010

Landsbank Guernsey Limited

in compulsory liquidation



Landsbanki Guernsey

Depositors can only expect to recover between 85% and 91% of their deposits

over a number of years

 without Guernsey Government intervention.

Its time for select committee

type inquiry to ascertain the truth.

Europe and the UK increase Depositor Compensation,

Guernsey's Chief Minister misleads States, again !

 Sheila Nicoll, director of conduct policy at the FSA, said that the need to maintain

 customer confidence in the banking system is one of the key lessons from the

financial crisis.

The Financial Services Authority (FSA)  have now confirmed that the new deposit compensation limit for the United Kingdom will increase from £50,000 to £85,000 per person, per authorised firm, from 31 December 2010.

This is the Sterling equivalent of the 100,000 Euros deposit compensation limit which comes into force in all European Economic Area (EEA) member states at the end of the year.

Further changes coming into effect on 31 December 2010 are:

·      Fast payout rules, with a target of a seven day payout for the majority of claimants and the remainder within the required 20 days.

·      Gross payout, which protects customers by ring fencing their deposits if they have savings and loans with the same firm. Currently, any outstanding loan or debt would be deducted from any compensation.

·      This new pan European requirement replaces the existing UK arrangement which has been in place since 2009, and which allowed for separate compensation cover for customers with deposits in two merging building societies.


Read the FSA Press release 17th Dec 2010


Chief Minister's statement in the Guernsey States in answer to a question by Deputy DeLisle 29th September 2010


Extract from Statement

"Should the draft  directive be approved it will then need to be transposed into domestic law in all EU member States, that process is likely to take some years, with the process usually taking  between three and seven years depending on the nature of the particular proposal."


Read the Email sent by the Landsbanki Guernsey Depositors Action group to the Chief Minister and all Guernsey Deputies and you wonder how they can get it so wrong. Its being introduced on 31Dec 2010 as we told him some months ago.




Spoof on Guernsey's Chief Minister from UTube


15th December 2010

The YouTube video on the left was taken from a link to YouTube and landsbanki Depositors listening to it will quickly recognise that although the video is a spoof on Guernsey's Chief Minister, the Narrative is extremely accurate and represents exactly how the depositors have been treated by the Guernsey Government over the past two years, right up to the Chief Minister's last flagrant misleading of the States on the 25th November over the possibility of Landsbanki depositors getting greater than 100% of their losses back. To date (15 dec 2010) he has still failed to respond to the questions they circulated to him and all States members regarding his Speculation in the matter. The subject is adequately covered in the articles below.

Perhaps he really has repented??


In a further email to all deputies the LGDAG press the Chief Minister

for answers to his speculative comments in the States Assembly

8th december 2010

The following email was sent to all Deputies by the LGDAG this evening:

Dear Deputies

We do not intend taking up any more of your time than is necessary, but felt that yesterday’s Royal Court decision on the liquidation of landsbanki Guernsey and the figures that came out at that hearing reinforce our complaint against the Chief Minister’s speculative statements to the Assembly during the DCS debate on the 25th November 2010. He will have been well aware of the correct figures in the matter. We also believe that the Chief Minister owes it to the States Assembly and the Landsbanki Guernsey depositors to answer the following questions in the interests of honesty and transparency.

Why is the CM contradicting/second-guessing the LG Administrators?

Why is the CM presenting to the States what the Administrators have dismissed as speculation, instead of the Administrators figures?

Why has the CM made speculative statements that have obliged the Administrators to spend time and effort to put out a public announcement to dismiss them?

Why doesn't the CM have confidence in the Royal Court appointed Administrators? If he had he would have used their figures.

Why doesn't the CM issue a correction and admit the figures are 85-91p?

Who are the CM’s “commentators” who have provided him with information he obviously feels is so accurate that it must be passed to the States assembly in preference to the Administrators figures?


We look forward to his replies,


Icelandic  Banks

broke the rules

before UK Deposits

Telegraph 12 dec 2010

Read the article


Daily Telegraph

Landsbanki Guernsey Depositors challenge Guernsey's Chief Minister


9th dec 2010

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


Read the article

Landsbanki Guernsey Limited (in CompulsoryLiquidation)

7 December 2010

Further to the Court hearing held on 7 December 2010, the Bank was placed into Compulsory Liquidation and Mr Richard Anthony Garrard and Mr Lee Antony Manning appointed as Joint Liquidators.

A date for the Commissioner’s meeting to examine and verify the interim accounts of the Joint Liquidators, consider and approve claims as appropriate, and consider a distribution to creditors has been provisionally set for 19 January 2011, however all creditors will be contacted by the Joint Liquidators in writing to confirm the details of this meeting.


Figures at a glance

Statement by the GFSC


Landsbanki savers accuse Trott over "100%-plus recovery comment.

7th December 2010

Read the article and add your comments to the Guernsey press forum


A depositor asks:

The Questions the Chief Minister should be answering are:

Why is the CM contradicting/second-guessing the LG Administrators?

Why is the CM presenting to the States what the Administrators have dismissed as speculation, instead of the Administrators figures?

Why has the CM obliged the Administrator to spend Depositors money to put out an announcement correcting his speculative comments?

Why doesn't the CM have confidence in the Royal Court appointed Administrators? If he had he would have used their figures.

Why doesn't the CM issue a correction and admit the figures are 85-91p?

Who are the CM’s “commentators” who have provided him with information he obviously feels is so accurate that it must be passed to the States assembly in preference to the Administrators figures?




Guernsey's Chief Minister

Lyndon Trott is in the fireing line for his misleading,speculative comments made in the States Assembly on the 25th November 2010.



Landsbanki Guernsey Administrators denounce

Chief Minister's statements as speculation

Deloittes, the administrators of Landsbanki Guernsey have found it necessary to issue

a statement after comments made in the States of Guernsey by its Chief Minister, Lyndon

Trott. His comments can be seen and heard in the article to the right by following

the links at the bottom of the article.

2nd December 2010


Deloittes state:

1 December 2010

"We understand that there has been some reference in the States of Guernsey to speculation in relation to the estimated ultimate recovery to creditors of the Bank.

The Joint Administrators would like to draw creditors’ attention to their fourth interim report, which states that their estimate of the ultimate recovery to creditors of the Bank remains at between 85p and 91p in the pound. However, it should be noted that these returns are subject to a wide range of factors which may result in the actual return being lower or higher than this range. For example, should the legal action in Iceland be successful then the recovery may increase, however the Joint Administrators remain cautious about the prospects of success."


Did the Chief Minister deliberately mislead the States of Guernsey Assembly by not quoting the figures from the Royal Court appointed Administrator, he would have been quite aware of them as their latest report only came out two weeks previously, quoting a return of 85%-91% not the "greater than 100%" intimated by the Chief Minister. it is also important to remember that depositors have been without their money now for over two years (since Oct 7th 2008) and that even with a further payment of approx 7.5% in January 2011 will only bring their total repayment to 75%. The Administrators will be applying to put the banki into liquidation around the 8th December 2010 and if this occurs it is not anticipated that depositors will receive a final payment until well into 2012, if not even later.


Perhaps The Chief Minister, Lyndon Trott, would like to share who his "Commentators" are and why he treats their speculation on "greater than 100% returns", with more credibility that the Royal Court Appointed Administrators, when addressing the States of Guernsey Assembly?


Landsbanki Guernsey Depositors Action Group

E-mail all Deputies.

3rd December 2010


As a result of the Chief minister's speculation in a States Debate on the Depositors Compensation Scheme, where he twice speculated that Landsbanki Guernsey Depositors may get more than 100% of their deposits back, the Administrators felt obliged to issue a statement counteracting his speculation with the true facts as they stand.

The LGDAG felt that the Chief Minister's comments were totally misleading to the States of Guernsey assembly as the Chief Minister is well aware of the Royal Court Appointed Administrators Reports showing that depositors are likely to receive between 85-91 % over years.

The LGDAG have therefore e-mailed all States of Guernsey Deputies laying out clearly how inappropriately they believe the Chief Minister has acted. In that e-mail they have provided a copy of the Administrators statement and a transcript of the Chief Minister's wording in that debate.

They are also considering as to whether the matter should be placed before the States of Guernsey Code of Conduct Panel.


Read the e-mail sent to all Deputies

Listen to what he said

Read the transcript with comment




25TH November 2010.

In a debate on the Guernsey Depositor Compensation Scheme in the Guernsey States today, the Chief Minister, Lyndon Trott stated that the Landsbanki Guernsey Depositors may get more than 100% of their deposits back. In what appeared to be a rather exaggerated speech he firstly claimed that depositors had already received around 70% (67.5%), then went on to say that certain elements (he did not clarify who) believed that depositors could well receive back in excess of 100%. The Administrators on the other hand have clearly stated that depositors could eventually expect to receive between 85% & 91% of their savings returned over a period of years, ( over two years have passed already).


Listen to Deputy Delisle accurate speech compared with the Chief Minister's exaggerated tirade


Trott stated:

"Sir two things have brought me to my feet, the first is Deputy DeLisle’s comments, he says that Guernsey has failed miserably its depositors, well sir I felt obliged to defend the actions of the Royal Court appointed Administrators, whose job it is to deal with this matter, and in doing so remind this assembly that they have suggested that depositors are likely to recover in excess of 90 pence in the pound, and I say in excess because I am aware that there are some commentators who have followed this closely who believe that that figure may in fact exceed 100%."


 "I did say approaching 70pence, it is 67.5 pence in the pound so far and expectations are that that number will be , as I say, close, if not , in the views of some commentators, greater than 100%. Lets be very clear about that, the situation is nowhere near as bleak as Deputy DeLisle seeks to paint."

Listen to what he said or Read the transcript with comment


So where does Deputy Trott get his information from and if it is not fact, then he has been misleading the Guernsey States assembly on the true position of the Landsbanki Guernsey Depositors.


The Administrators will be applying to the Guernsey Royal Court early in December 2010 to place Landsbanki Guernsey into liquidation and it is hoped that a further, up to, 7.5% wil be paid to depositors in January 2011. This only brings the total repayment to depositors to 75%, so it appears totally irresponsible of Guernsey's Chief Minister , Lyndon Trott to come out with his unsubstantiated statement. His exact wording will be studied when the transcript becomes available.

A forum has just been started on the Guernsey press website on the DCS

The Chief Minister's wording will be added to it when it becomes available




There is an update 

on the Deloitte site on Tuesday 16th Nov 2010.

This will be followed by a report sent to all

Landsbanki Guernsey Depositors.

Follow the DeLoites link above to read their release


Landsbanki Guernsey

Depositors can only expect to recover between 85% and 91% of their deposits

over a number of years

 without Guernsey Government intervention.

Its time for select committee

type inquiry.

Guernsey Chief Minister & Policy Council

Bemused by Landsbanki Correspondence

One wonders why they are bemused, the questions asked are quite straight forward and they

have still not answered as to what they have been doing over the last 15 months with his" robust and

consistant dialogue", the letter to and his reply can be seen here  

24 October 2010

Radio Guernsey contrive to give Lyndon Trott an easy time on phone in,

 JKT fails to act as agent provocateur and draw out the truth.

 Where was the second Deputy to provide argument?


Two hours of Trott's usual smoke screens & Mirrors, a rather boring phone-in


Well what an almighty let down this morning’s phone-in was, with the Chief Minister Lyndon Trott as Guest, I think we all thought, that just possibly for once in his life, he would answer a question.

That was not to be, the program had rather obviously been rigged before it even started, firstly the Chief Minister was appearing by himself, so no chance of contradiction from another Deputy and Jenny Kendal Tobias was so timid (unusually), that it was obvious that she had been prewarned to give him a free rein.

From a Landsbanki point of view a number of very relevant questions were asked by email by what appeared to be a number of depositors. These were bundled together and the Chief Minister given a free run to make a speech without any stops or cross examination. In fact he did not answer a single question that was asked, he was too busy listening to his own voice spouting inane none relevant answers. We have to blame the interviewer to a large extent for not listening properly to the questions and then picking him up on it.

All in all The Phone-in and the Chief Minister were rather damp squibs, it  appears that he thinks that if he mentions "No regulatory failure" enough times it will become fact, sorry it doesn't work that way.



Two years down the road

Landsbanki Guernsey Depositors Action Group Deputy Chairman

is interviewed on Radio Guernsey & Channel Television

Regarding Depositors treatment by Guernsey's Government

7th October 2010

It has been exactly two years since Landsbanki Guernsey was placed in administration

The media interview Gary Blanchford the local deputy Chairman on the thought of depositors

at this time, his interview can be heard here.


Channel TV Video link 

We hope that Peewee & the Guernsey press will forgive us borrowing this excellent cartoon

Read the Guernsey press Forum

'Trott not doing enough for depositors'

Read the link and add your comment


Guernsey's Chief minister Lyndon Trott will be on the

BBC Radio Guernsey Phone-in on Sunday 24th October


If you want to ask him personally what he has been doing for Landsbanki Depositors now is your chance.

He has steered clear of this program for a long time now, rather like the meeting he promised with the

Landsbanki depositors.

By the way, it's our oldest depositors 99th Birthday on Sunday 17th October,

So Happy Birthday Elizabeth Castle, the Chief minister may give some honest answers as a present.

Contact with Radio Guernsey to get on the phone-in:

Tel 01481 200373  from abroad 0044 1481 200273

The broadcast will be available on 93.2FM, 99FM and 1116MW, as well as through the internet on the BBC Guernsey website

No transparency in Guernsey's Depositor Protection Scheme

19 October 2010

At their meeting in November 2010 the Guernsey States will debate an amendment by the Commerce and Employment Department which will to all intense and purpose transform the Guernsey Depositors Compensation Scheme from a pre-funded scheme into a post-funded scheme. The Landsbanki Guernsey Depositors Action Group have been asking questions for many months now and questioned the adequacy of the current scheme, their questions have been blocked at every point, by the DCS Committee, the GFSC and Guernsey's Government. We now know why, all of our questions about the adequate funding of the scheme, what would happen if two banks went down in the same five year period, as the current scheme only provided for cover up to £100 million in any five years, were obviously hitting the mark and any answers would have proved embarassing to both the DCS Committee and Guernsey Government.


It appears that the Banks do not want to prefund the scheme and that Guernsey's Government is caving in to the pressure, worrying that more banks may leave the Island if they do not comply with the banks wishes. The scheme is already totally inadequate and falls well behind the new EC scheme being introduced in January 2011 where unlike Guernsey who will cover up to £50,000, the operative words being"up to", the new European scheme will cover €100,000 (£85,000) per depositor, a guarranteed figure. It is also believed that, if the Guernsey amendment goes through, the banks will not be forced by legislation to pay up but it is felt that they will be honour bound. The whole amendment does nothing to instill confidence in the Guernsey retail banking sector, and depositors should think carefully before depositing their hard earned money in Guernsey.

This subject will be followed closely in the weeks to come.   


Landsbanki Guernsey Depositors Action Group

issue a Press release on Chief Minister's answers

in the States of Guernsey Assembly

4th October 2010

They Question his 'robust & consistant dialogue' with Iceland

Having now had a chance to read the transcript of the Guernsey States meeting held in the Royal Court on Wednesday 29th September 2010, the LGDAG are now

in a position to to comment on the Answers given by the Chief Minister to questions put to him by Deputy David DeLisle on the Landsbanki Guernsey affair and also

on the EC proposals to raise the Depositor Compensation levels.



Chief Minister Lyndon Trott evades question on the

Guernsey Depositor Compensation Scheme

29 September 2010

During question time in the States debate on Wednesday 29th September 2010, the Guernsey's Chief Minister Lyndon Trott was asked by Deputy DeLisle,

"Can I ask a supplementary Sir. How much money does the Guernsey scheme hold or have access to in total and if a major high street bank failed is there enough to give everyone their money up to £85,000 or even £50,000." The reply or non reply by the Chief Minister totally evaded the question and it is a question that has been asked in the past of the DCS committee, again without a detailed response. So no depositor in Guernsey is clear as to what extent they would be covered should another bank go down tomorrow. 

One should be reminded of Principal 12, Public awareness: In order for a deposit insurance system to be effective it is essential that the public be informed on an ongoing basis about the benefits and limitations of the deposit insurance system.

This certainly isn't happening in Guernsey and it appears the Chief Minister spends more time dodging questions rather than answering them.


A transcript of Deputy DeLisles Question on the DCS to the Chief Minister can be READ HERE

An audio of the transcript of the debate can be heard here



Best describes the Guernsey Chief Minister, Lyndon Trott's

performance on wednesday, whilst answering questions in the

States assembly relating to Landsbanki Guernsey.


The Landsbanki Guernsey depositors Action Group had written to him on

the 10th August 2010 asking a number of questions as the last update they had received from him had been on the 10th August 2009. To date 30 September 2010, they are yet to receive a reply to their letter.

(Response arrived 30th Sept 2010).

Because of this they approached a number of Guernsey Deputies as they felt they were being ignored deliberatly by the Chief Minister/Policy Council.

Some of those questions were placed before the Chief Miinister in writing prior to

the States meeting by Deputy David DeLisle to be answered at that meeting

during question time.

Needless to say, although Deputy DeLisle's questions were very clear and

straightforward, the Chief Minister's replies were long, loud, forceful, prepared statements which failed to answer the questions fully and were largly irrellevent.


The transcript will be analysed over the next few days and this article will be

expanded on.

For those who would like to listen to the Questions & answers live click


A full transcript of the questions & Answers is now avaiable

The Transcript


The Transcript with comments





Could this be what he said unconditionally



September 2010

On 2 September 2009 Northern Rock (Guernsey) Limited closed following a decision by the Board of Northern Rock plc, the parent company of Northern Rock (Guernsey) Limited. This closure followed an extensive mailing campaign during which we wrote to you on 2 June 2010, and again on 2 July and 2 August 2010, asking you to close your account(s).

The interest rate on all accounts reduced to 0.05% gross per annum/AER with effect from midnight on 2 September 2010. Your interest payment date will remain the same and the rate of interest will be fixed.

Our records indicate that we have still not received closure instructions from a small number of customers.

It is the intention to shortly appoint a third party (the 'Liquidator') and place Northern Rock (Guernsey) Limited into solvent voluntary liquidation after making all reasonable efforts to trace those customers and return deposits remaining at 2 September 2010. Following the appointment of the Liquidator customers will no longer be able to deal with the bank. Customers who have not previously replied to our extensive mailing campaign are strongly advised to make contact with us immediately.



Will Anglo Irish pay out to UK Savers?

By Lorna Bourk 29 September 2010


City Wire

UK savers are right to be worried by the Financial prediciment

of Anglo Irish Bank as the Irish Government prepares to reveal the full cost of bailing out its Countries battered bankin section


Read the full article

Protection for European & UK Depositors

will increase from January 2011

UK FSCS  22 September 2010


But Guernsey savers will still be left poorly protected.

The current limit in the UK is £50,000 , but savers are guaranteed that £50,000, unlike

in Guernsey where the scheme mentions up to £50,000, but it is unlikely to achieve that.

From the 1st january 2011 the UK will increase their DCS following European Legislation. The FSA plan to issue a consultation in October 2010 on increasing the coverage to the equivalent in sterling of €100,000, it will take effect from 31st December 2010.

The €100,000 will equate to approx £85,000 at today's rates.

This move will mean that Guernsey will be well out of step in its protection of its retail

Bank depositors who will be left poorly protected and this in turn can only lead to

depositors looking for a safer better protected place for their money.

Read the UK FSCS article

Read the Citywire article

Guernsey drops four places in

finance centre rankings


Guernsey has dropped four places in a ranking of global finance centres, but experts say they are not concerned.

22 Sept 2010


They would wouldn't they?


26% drop in Retail deposits in 18 Months.

A very poor Depositors Compensation scheme

No Financial ombudsman

Apparently out of step with Europe on Corporate Tax.

Failed to introduce a "Freedom of Information" Law

Total lack of Government Transparency


Need one say more.


Read the Global Financial Report


Former Iceland PM faces trial over bank collapse

Icelandic lawmakers have concluded the country's former prime minister ought to be tried for "economic negligence" over the catastrophic failure of its banking system and currency.

Telegraph on line By Rowena Mason 12 Sept 2010

Their report says that Geir Haarde and his colleagues ought to have realised the extremely serious nature of Iceland's financial problems more than six months before the crash Photo: REUTERS

A special investigation committee, known popularly as the Truth Commission, recommended that Geir Haarde, the former prime minister, stand trial, along with Björgvin Sigurdsson, the former minister of commerce, and Árni Mathiesen, the former minister of finance.

It found during an 18-month inquiry that the three men showed recklessness in their handling of Iceland's financial crisis, which brought down its three banks and crippled the currency in October 2008.


Geir Haarde, former Prime

Minister of iceland

Arni Mathiesen, former

Finance Minister of

Iceland, Guernsey

Chief Minister's first

Icelandic Contact, when

he managed to get his

telephone number.

Bjorgvin Sigurdsson former

Minister of Commerce


Guernsey's Chief Minister comes Bottom

out of officials representing Government in the Channel islands & Isle of man.

9th September 2010

In a most unusual survey by "Financial Centres International" which appears to have little relevence to anything, Guernsey's Chief Minister Lyndon Trott appears to have come out bottom when compared to similiar positions in Jersey and the Isle of Man, (See table to Right).

The survey appears to list the 500 most influential people in the worlds financial centres, behind the reshaping of the global financial system following the credit crisis which began in 2007. Guernsey's Chief Minister came in at 203 well below his counterparts in Jersey and the Isle of Man. The Guernsey population will have to look out in 2011 as he will be spending most of his time Global trotting to improve his bottom place. He did however manage to get his photo on the front page of the survey, surprise surprise.

Link to Financials Centres International

At £125 for membership to this magazine, Governments will mostly be reading about themselves. In fact the survey was probably to promote magazine sales.



Table showing Channel island & Isle of Man Placings

in the top 500


Jersey’s Chief Minister Terry Le Sueur


Guernsey GFSC Director general Nick Van Leuvan 


Chief Executive of isle of Mann FSC John Apsden


Chief Executive Jersey Finance Geoff Cook


Chief executive of Guernsey Finance Peter Niven


Guernsey Chief Minister Lyndon Trott 


Guernsey Bank deposits drop almost

£2 billion

6th September 2010

More bank licences expected to be surrendered later in the year.

Is there a growing lack of confidence following the way Landsbanki

Guernsey Depositors have been treated in Guernsey since October 2008?

The fall in deposits represents a 6.2% decrease since the same time last year.

The full report can be seen on the GFSC's website, by following this link

or an abridged version on the Guernsey Press website


International Advisor picks up on Guernsey Press forum comments 

New audio index page

This site is now starting an audio index page

covering some of the Audio aspects of the  Landsbank

Guernsey Fiasco. During that last two years there have been

States debates, interviews, Statements etc., some of which

have been captured on audio. Those will now slowly be put together over the coming weeks and months onto the 

Audio index page. The link is in the page tabs above.

Landsbanki Guernsey Depositors Action Group

reject aspects of the GFSC 2009 Annual Report

30th August 2009

The LGDAG wrote to Mr Nik Van Leuvan, Director General of the Guernsey Financial Services Commission (GFSC)  on the 19th August 2010 and in that letter stated  that they could not let the GFSC's 2009 Annual Report go unchallenged and that challenge must go on record. Along with that letter they sent the apparent proof to back up that challenge.

In the Banking section of their 2009 report, under the Banking Division section on page 17, they had claimed, by quoting passages from the Promontory report, that the actions taken by the Commission in 2008 were directly beneficial to the interests of LGL's depositors. There is no doubt that some of their actions six months prior to the bank going into administration were of some benefit, but some of their actions were the reason why Landsbanki depositors are still owed 32.5% of their money, two years down the line. By classing Heritable Bank in the UK as a third party bank and allowing the upstreaming of £36 million of depositors money to it without being ring fenced meant that money disapeared in the administration pot for Heritable. Heritable could not be classed as a third party as it was sister to Landsbanki Islands hf in Iceland and relied on that bank for its credit line. In the LGDAG's opinion the GFSC got it badly wrong.

Mr Van Leuvan replied to the letter on the 26th August 2010 stating that, "the Commission's oft repeated position in this matter needs no rehearsal in this letter.

His full reply can be see  in the link to the right.


I would remind you of the statement made on the 9th October 2008

by the Administrator Rik Garrard.

“The Bank had taken measures to diversify its exposure to its parent company in the six months preceding my appointment. The main reason for the Bank’s difficulties has been the placing of funds with its UK fellow subsidiary, Heritable Bank, which has now gone into Administration."


Links to various aspects of the article to the left.

19th August 2010

LGDAG letter to Mr Van Leuvan rejecting the GFSC 2009 Annual report

Accompanied by:

Report by Matthew Dorman on an Independent Public Inquiry

Copy of a letter to Mr Van leuvan dated 4th Aug 2009, with attached apparent proof of a lack of due diligence.

Basel Core Principals that were not addressed in the Promontory report

26th August 2010 A reply from Mr van leuvan to the LGDAG rejecting their criticism
4th Sept 2010

A response is required to Mr Van Leuvan's

reply of 26th August 2010


Seperate documents of relevence

January 2009 The Promontory Report, by Michael Foote
July 2010 GFSC 2009 Annual Report


Landsbanki Guernsey

Depositors can only expect to recover between 85% and 91% of their deposits

over a number of years

 without Guernsey Government intervention.

Its time for select committee

type inquiry.

Landsbanki Bond Holders `Not Likely to Get Much', Iceland's Sigfusson Says

Creditors of failed Icelandic lender Landsbanki Islands hf will get next to nothing back from their investments after assets are sold to cover the bank’s priority claims, Finance Minister Steingrimur Sigfusson said.

The comments end hopes creditors, including Paribas and  Nordea Bank AE, may have had of recouping their share of $27.4 billion in debt owed them since Landsbanki’s collapse in October 2008.

“The general claimants in Landsbanki are not likely to get much, if anything,” Sigfusson said in an interview in Reykjavik yesterday. “In the other banks, the situation is better and they will get some return,” he said, referring to bond holders in Kaupthing Bank hf and Glitnir Bank hf.


Bloomberg  By Omar R. Valdimarsson - Aug 25, 2010 12:00 AM GMT+0100  READ MORE


Another set back for Landsbanki Guernsey Depositors

Telegraph on line

By Sean O'Hare
Published: 12:55PM BST 24 Aug 2010


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.


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.

The application was separate from the official recovery effort being made on the Landsbanki Guernsey depositors’ behalf by Deloitte, the Landsbanki Guernsey bank’s administrator.



One Year, No Updates 

The response from the States to repeated enquiries by the Landsbanki Depositors has been cold as the breeze that blows in Iceland.

Ahead of the Policy Council's first post-summer meeting on Monday, action Group Chairman Neil Dickens wonders if the Chief Minister has any news for them..............

Guernsey Press 19th August 2010


Read the original letter


Guernsey Policy Council initial response 19th August 2010

"The Policy Council has received a similarly worded letter from the Landsbanki Guernsey Depositors Action Group, to which it will be responding directly.

The first Policy Council meeting was on Monday 23rd August 2010, after their summer recess, so the depositors look forward to their response.



LGDAG Deputy Chairman (Guernsey Branch) interviewed by Radio Guernsey on Landsbanki Current situation in Iceland

16th August 2010

Simon Fairclough of Radio Guernsey Interviews Gary Blanchford Deputy Chairman of the Landsbanki Guernsey Depositors Action Group


Download the interview 

( the download link is at the bottom of the page that opens in Send Space)


Play the recording


Policy Council's initial response (Radio Guernsey 19Aug2010)

Read the original letter No Government response for one year (dated 10 Aug 2010)


Guernsey Landsbanki Depositors unbowed by Iceland Setback

International Advisor 18th Aug 2010

By Helen Burggraf Deputy Editor

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.




Follow the link above and add a comment to the forum

Letter to Chief Minister and Policy Council

now circulated to all Guernsey Deputies.

Ever since the landsbanki Guernsey Fiasco started Guernsey States Deputies have been for the most part kept in the dark as to what was going on. The Chief Minister had taken control right from the start and has always been loath to impart any information he receives.

The Landsbanki Guernsey Depositors have nothing to hide and have always tried to keep Guernsey's Deputies up to date, often passing them information that they were totally unaware of.

The link below is a letter sent to the Chief Minister and Policy Council on the 10th August 2010, one year on from our last update from him

A letter has been sent to the Chief Minister & Policy Council




"As Guernsey States members enter the recess period it can be a time for reflection on the past year. A few thoughts might be given to the words

Openess and Transparency they like to splash around so much in their speeches."

 Quote by Nick Mann Guernsey Press 2/8/2010


Icelandic Winding Up Board continues to ignore

 Landsbanki Guernsey Depositors

13th August 2010

Landsbanki Guernsey depositors' claims were originally rejected without explanation by the Icelandic Winding up Board, unlike those of personal depositors in the UK and Netherlands, each strongly represented as single, combined claims by their respective governments. At this month's  meeting to try and resolve the dispute, the WUB continued to refuse to reconsider  on its original position.

The settlement meeting of 267 claims made by 202  individual depositors of Landsbanki Guernsey Ltd was held on Wednesday 11th August 2010 in Iceland. The group's Icelandic lawyer attended the meeting on their behalf. The Winding Up board would not move from its original position and the depositors’ lawyer restated the previously filed objections as well as requesting certain documents. A settlement between the two parties proved to be impossible and as a result the Winding Up Board will now refer the dispute to the district Court of Reykjavik.



Former Landsbanki Guernsey MD's plan for roving coffee van upsets cafe boss

14th August 2010

Former Managing Director of Landsbanki Guernsey, Steve le Poidevin, the bank that was forced into administration on the 7th October 2008, appears to be upsetting the owner of the White Rock Cafe by planning to use a nearby area as a mobile coffee shop in competition with him. Steve Le Poidevin is the owner of Muse, a cafe, delicatessen situated on the Glategney esplanade in St Peter Port, Guernsey.

One Year

 since Landsbanki Guernsey Depositors

received an update from Guernsey's

Chief Minister, Lyndon Trott on his political progress on their behalf.


On Tuesday 10th August 2010 it will be exactly one year since Guernsey's Chief Minister lyndon Trott gave Landsbanki Guernsey Depositors any form of update on how the Guernsey Government has taken their case forward in a Political way. In fact his silence has been deafening. The last update was a short release on Monday 10th August 2009 after his return from iceland. This on the face of it appears an entirely unreasonable course to take considering that 1600 depositors lost £117 million in a Guernsey regulated bank on the 7th October 2008 and to date have only received back 67.5% of their money.



A letter has been sent to the Chief Minister & Policy Council by the Chairman of the Landsbanki Guernsey Depositors Action Group on 10th August 2010 asking for an explaination

 It appears that the Guernsey Government attitude is now, ignore them and they will go away. After some pressure, from the LGDAG and a complete let-down by the UK Treasury and the Ministry of Justice, he did make it to Iceland on the 6th August 2009 and spoke to various officials.


 He has also insisted all along that a continuous dialogue existed between Guernsey and the UK Treasury who were representing Guernsey's interests in negotiations with Iceland. This proved to be untrue, not perhaps that he wasn't speaking to the UK Treasury, but, that it has since been shown that the UK Treasury were placing their own interests first and were failing to represent Guernsey or the Isle of Man in a proper manner and heaven knows what they were feeding the Chief Minister. Now total silence for one year from the Chief Minister is totally unacceptable.


1) What follow-ups has he pursued in Iceland since, or for that matter in any political direction to assist depositors ?


2) What in fact is now happening with regard to the UK Treasury    representing Guernsey in iceland or indeed the Ministry of justice?


3)Are the UK Treasury now insisting Landsbanki Guernsey Depositors are given priority status as are the UK in their claims with the Icelandic Winding Up Board?


4) The GFSC, 2009,report (link below) raised a number of questions by Deputies regarding a truly independent inquiry, it certainly needs one to identify the problems with this tangled mess, is he going to push for one?


5) We are still waiting for his meeting with Landsbanki Depositors, promised publically in February 2009, what happened to that?

What was it he said ?


"As Guernsey States members enter the recess period it can be a time for reflection on the past year. A few thoughts might be given to the words

Openess and Transparency they like to splash around so much in their speeches." Quote by Nick Mann Guernsey Press 2/8/2010


                      GUERNSEY STATES DISCUSS 2009 GFSC REPORT







The Guernsey Financial services Commission report was discussed in the States of Guernsey Chamber on Wednesday 28th July 2010. A number of Deputies spoke and expressed concerns on various aspects of the report. these ranged from:


1) How Guernsey's reputation has suffered by the collapse of Landsbanki Guernsey and will continue to suffer.

2) The high cost of the GFSC (£10million in 2009, with over £7 million of that on wages and administration.)

3) There should be a full truly independent inquiry into Landsbanki Guernsey collapse

4) A comprehensive examination into communications between the GFSC's & UK FSA during the Landsbanki affair.

5) The totally inadequate Guernsey depositors compensation scheme.

6) Does the Chief Minister have a mind to support compensation for the Landsbanki depositors after all?

7) Is it not time a Financial Ombudsman was introduced into Guernsey?

8) What is the liaison between the States Policy Council and the GFSC, do either side alert each other to potential risks?


Statements will be expanded on over the next few days.

Read The Chief Minister's reply to the debate seperatly and the comments from this website.


For those who would like to read a transcript of the whole debate. READ MORE




Guernsey will not follow the EC in improving depositor Protection

27th july 2010

Guernsey will not follow the EC in their proposed move to improve protection for retail deposits up to

€ 100,000, (approx £84,000) from the present, up to £50,000.

Guernsey is not part of the Europen Union and therefore is not obliged to impliment EU directives,, Jarrod Cowley-Grimmond, director of Financial sector department at Commerce and employment, ruled out any increase for Guernsey depositors.

This once again showing clearly Guernsey's attitude to the smaller investor compared with other jusisdictions.

See article in Guernsey Press & add your comments to the forum

Guernsey Bank deposits down by 17% since same time last year

2nd June 2010



Total deposits held with Guernsey banks at the end of March 2010 increased in sterling terms by £1.3 billion from the end of December 2009 level of £117.4 billion up to £118.7 billion, representing a 1.1% increase over the quarter but a 17% decrease since the same time a year ago. Total assets and liabilities increased by £2.1 billion to £137.9 billion representing a 1.5% increase over the quarter.


26 July 2010

Letter to press in response to Chief minister's comments printed at last

A letter sent to the Guernsey Press on the 11th july 2010 in response to comments made by Chief Minister lyndon Trott in his reply to Kate Barrett's letter has only just been printed. It is a shame that it has taken so long to be able to put into context his incorrect statements and his total lack of sincerity in his dealings with the Landsbanki Guernsey depositors.

 For those who have not read the letters and comments, just follow the link below



Landsbanki Guernsey

Depositors can only expect to recover between 85% and 91% of their deposits

over a number of years

 without Guernsey Government intervention.

Its time for select committee

type inquiry.

Guernsey's Government still remain the only Government to have totally failed their depositors and failed to hold a proper independent inquiry into the whole debacle. What are they hiding?






Other websites that highlight the Landsbank Guernsey situation:



GFSC Annual report for 2009

Read a Landsbanki Depositor's Comments

on this site regarding the GFSC's opinion in their report that the actions taken by them were directly benificial to the Landsbanki Guernsey Depositors?


Add your own comment to the Guernsey Press forum on the subject

The forum in the Guernsey press at the link above is warming up. Please make an effort to place comments and show your feelings over the way Landsbanki Guernsey depositors have been treated by Guernsey's Government and the Guernsey Financial Services Commission (GFSC)


Europe to increase Depositor protection to €100,000

Brussels 12th July 2010

Internal Market and Services Commissioner Michel Barnier said: "The adoption of today's package marks the Commission's latest endeavour to bring transparency and responsibility to Europe's financial system in order to prevent and manage future crises. European consumers deserve better. They need reassurance that their savings, investments or insurance policies are protected no matter where in Europe they are based. To make this a reality, I now call upon the European Parliament and the Council to make rapid progress in approving today's package."



COMMENT: "European savers deserve better." Obviously Guernsey doesn't feel the same about its depositors, it just lets them go to the wall ( Landsbanki Guernsey depositors) and now has an inadequate depositors protection Scheme.

Landsbanki Guernsey Depositors demand answers and an independent inquiry

 Letter to the Guernsey Press in response to the Chief Minister's comments below 10 July 2010

Copied to all Guernsey Deputies 11th July 2010

Dear sir,

I feel that I really must take issue with Chief Minister, Lyndon Trott’s reply to Kate Barrett’s letter in the press on the 8th July 2010, “Were still waiting.”

His offer to have a meeting with the Landsbanki Depositors is a matter of public record and was made by him when he phoned into the Sunday phone-in on the 22nd February 2009.


A Letter to Guernsey Press by Kate Barrett Thurs 8th July 2010

"We're still waiting"

The Guernsey Financial Services Commission’s response to a recent letter in which a member of the Landsbanki Depositor’s Group asked, once again, for an independent public enquiry into their conduct regarding Landsbanki Guernsey, was arrogant and patronising in the extreme. This can only be equaled by the shameful lack of interest and action by the States members and the chief minister in particular. They seem to be reluctant, or should I say too frightened, to speak out on what is turning out to be an embarrassing and unpopular subject for them. And why, after almost two years, and despite numerous promises, has Mr Trott still not met with the Landsbanki Guernsey Depositors Action Group?
In this age of accountability and transparency, how can the GFSC think that a report commissioned and funded by themselves about their own conduct and under their own limited remit be acceptable?
Something is not right. What are these two august bodies trying to hide? If indeed there is nothing to hide, then why not agree to an independent public enquiry with a remit and agenda acceptable to all parties and get everything out in the open?
The Landsbanki depositors will not give up and the longer this impasse continues, the more harm is being done to the reputation of Guernsey in the international finance sectors and in the international media.
I can almost hear the sighs of ‘not that lot again’ but put yourselves in our shoes and think how you would feel if you’d lost your savings, your nest egg or your pension and the bodies whom you thought were protecting your money, and working for you as a Guernsey depositor, just pat you on the head and hope you’ll go away. Would you just go away? No. You’d fight for justice.

So come on GFSC, Guernsey’s financial reputation and your own depends on this. States members, remember you are elected to serve all the people, even the LBGDA group.
Who knows, perhaps this whole situation could have been avoided if both the GFSC and the States had better people skills. Perhaps the employment of a good PR firm would have helped.
So come on GFSC, Guernsey’s financial reputation and your own depends on this. States members, remember you are elected to serve all the people, even the LBGDA group.
Who knows, perhaps this whole situation could have been avoided if both the GFSC and the States had better people skills. Perhaps the employment of a good PR firm would have helped.


Guernsey's Chief Minister, Lyndon Trott's reply 

Chief minister Lyndon Trott replies: ‘I am grateful for the opportunity to respond to this letter. Readers will know that there have been a handful of letters, which have made the same points over the past months, and the comments I made in response to those are equally applicable here. I would, however, like to add that I have only ever declined to have a private meeting with the Landsbanki Guernsey Depositors Action Group because the issue in question is their request for payment using Guernsey taxpayers’ money, and so should be open to the public, a condition the group do not appear to accept.
As I have previously stated publicly, the report by Promontory Financial Group (UK) Limited, led by the highly-respected Michael Foot CBE, looked into the circumstances leading to the placing of Landsbanki Guernsey Limited (LGL) into administration and found that the GFSC measured up to good practice, that it met international standards and that there was no regulatory failure.
That being the case, the Policy Council does not believe that the expenditure of more taxpayers’ money on another inquiry is justified.
I will once again refer this matter to the Policy Council in order to ensure that their view remains consistent with previous deliberations.’


GFSC understatement in Guernsey Press article 

24th june 2010

Read More




21st June 2010

A director of the GFSC has said that the Commission's response to the Landsbanki Guernsey Ltd events are already in the public domain and as such it has no further comments.


Unfortunately the Commission has never responded fully to the proof placed before them by the Landsbanki Guernsey Depositors Action Group and the many facts that have come to light since their original statement, which is now well out of date and irrelevant to current information. The Commission appears to be once again hiding behind the Promontory report which has long since proved to lack substance.


See the excellent letter to the Guernsey Press below by Mark Asheby which prompted the response from the GFSC.


Letter to the Guernsey Press by Mark Asheby on 21st june 2010

Departed Northern Rock bore a resemblance to Landsbanki — and that bank’s savers are still suffering
What strikes me about the departure of Northern Rock from Guernsey is that, like Landsbanki Guernsey, Northern Rock did not have any of its own staff in Guernsey. The operations of both Northern Rock and Landsbanki Guernsey were run by Butterfield Bank.
Both banks set up ‘skeleton’ offices with only a handful of outsourced staff, with the sole aim of gathering deposits from savers and immediately upstreaming them, mostly to the UK. This, in my view, demonstrates a lack of commitment to the jurisdiction and to depositors, particularly so in the case of Landsbanki Guernsey. No wonder no one at Landsbanki Guernsey, the Landsbanki parent or the GFSC bothered to check whether or not the parental guarantee had been signed. We now know that it hadn’t, which is why depositors’ claims were roundly rejected by the winding up board of Landsbanki in Iceland.
When the Cheshire Building Society announced in early 2006 that it was closing its Guernsey operation, the Guernsey authorities desperately tried to find another financial ‘institution to acquire the Cheshire savings book to avoid a bank closure. They were so eager to attract another bank to the jurisdiction to maintain the deposit base, traditionally the bedrock of Guernsey’s international finance centre, that they authorised the acquisition of the Cheshire savings book by a hitherto largely unknown Icelandic bank when, thanks to an Icelandic parliamentary inquiry, we know that Landsbanki was already doomed at the time of the acquisition.
Mark Asheby letter continued:
True, the promontory report ‘whitewash’ supposedly exonerated the GFSC, but what would one expect from a report that was commissioned and paid for by the GFSC under its own limited terms of references and conducted behind closed doors? When Landsbanki Guernsey failed, the Guernsey government, GFSC and Guernsey Finance all fell over themselves to try, very belatedly, to assure anyone who would listen that deposits were not all that important to Guernsey after all.
Of course, these very defensive statements formed part of a co-ordinated but futile reputational damage-limitation exercise designed to divert attention from the clear regulatory failure on the part of the GFSC in relying on third-party endorsement (from the FSA) to convince themselves that Heritable Bank in the UK, to where most LG savings were upstreamed in various guises, was ring fenced from Icelandic risk - instead of carrying out its own due diligence. How the GFSC could have been convinced that Heritable was ring-fenced from Icelandic risk when it shared the same Icelandic parent as Landsbanki Guensey is still a mystery. However, we do know that a fairly junior member of the GFSC’s staff at the time – rather than the director-general, director of banking supervision or at the very least the deputy or assistant director of banking supervision – was tasked with contacting the FSA on this pivotal matter. This, in my view, betrayed the scant significance that the FSC attached to such important correspondence. Worse, the GFSC permitted Landsbanki Guernsey to place the majority of its assets in one basket, the Landsbanki-owned Heritable Bank in the UK, contrary to best international banking practice as stipulated in Basel Core Principles and as required the IMF, which is this year conducting an assessment of Guernsey as a financial services jurisdiction.
Did the GFSC demonstrate any contrition after Landsbanki Guernsey failed? Not likely. Ever since Lnadsbanki Guernsey collapsed they have, incredibly, been trying to lay the blame fairly and squarely on savers themselves for not heeding the warning contained in an esoteric consultation paper that they issued (presumably aimed at the banking sector) in August 2008 which stated that “letters of comfort are not legally binding” - crucial information that was never transmitted directly to savers by either Landsbanki Guernsey or by the GFSC.
The GFSC told me on 16 February 2010, ‘The GFSC has never required parental guarantees and pointed out the limitations of such undertakings in its August 2008 consultation paper entitled, “Consultation on Parental Upstreaming and the Introduction of Depositor Protection and Ombudsman Schemes”...
‘The GPSC does require- subsidiary banks to have letters of comfort in place but it has always recognised that these are not legally binding and made that point plainly in the same consultation paper.’ ’ Yes, in the very technical consultation paper that savers, who are generally unsophisticated investors, are highly unlikely to have been aware of, let alone having read.
 All of which leads us to the all-important question that still remains unanswered: why has there been no fully-independent public parliamentary inquiry in Guernsey along the lines of those conducted in the Isle of Man, the UK and even in near-bankrupt Iceland? 








Further Update by Administrators

16th June 2010

Regarding individual claims

Read More




Paid for by the Guernsey Taxpayer to the detriment of the Bowel Screening program.

The conference will take place at the Fermain Valley Hotel during the morning and the main subject will be Marine renewable energy( a worthy subject). A subject that I would suggest is already well in progress in both Guernsey and Alderney by experts and not worth £125,000 of political hot air. A conference that could have just as easily been done by video link on a small budget.

Other subjects will be:

Organizing the venue for the next meeting

Arranging where everyone will stand in the group photograph (which incidentally will be available on the Guernsey government website).

Organizing the press conference


The previous Conference held in Guernsey in 2004 cost the taxpayer over £200,000.

Nothing has been achieved to the benefit of Guernsey from this conference over the years.

Its time someone decided to pull the plug on this financial waste purely for the benefit and prestige of a few politicians.

They would do well to listen to Prime Minister David Cameron's Comments over G8. He warned fellow leaders that the annual gatherings must be "more than just grand-talking shops". They should focus on on delivering concrete results which are relevent to the public back home.

Up to now the BIC, as far as Guernsey is concerned has been an expensive grand-talking shop with few if any local results. Perhaps that's why David Cameron didn't bother to attend.


Guernsey Bank deposits down by 17% since same time last year

2nd June 2010



Total deposits held with Guernsey banks at the end of March 2010 increased in sterling terms by £1.3 billion from the end of December 2009 level of £117.4 billion up to £118.7 billion, representing a 1.1% increase over the quarter but a 17% decrease since the same time a year ago. Total assets and liabilities increased by £2.1 billion to £137.9 billion representing a 1.5% increase over the quarter.

Landsbanki Guernsey

Depositors can only expect to recover between 85% and 90% of their deposits

over a number of years

 without Guernsey Government intervention.

Its time for select committee

type inquiry.

Guernsey's Government still remain the only Government to have totally failed their depositors and failed to hold a proper independent inquiry into the whole debacle.



Administrators update 26th May 2010 

Landsbanki Guernsey Limited (in Administration)

26 May 2010

Claims against Landsbanki Islands hf (“LIHF”) and legal action in Iceland

On 12 April 2010 the Special Investigation Commission (SIC) established by the Icelandic Parliament, in December 2008, to investigate and analyse the processes leading to the collapse of the three main banks in Iceland issued its report. The English parts of the report can be accessed at


Read the full update

Northern Rock closes offshore business

2nd June 2010 (City Wire)

Northern Rock Guernsey’s 6,000 customers have three months to close their



Irish Permanent to shut up shop to offshore savers. 

31st May 2010 (Telegraph)

ONE of the top-paying offshore banks, Irish Permanent is shutting up shop, cutting the choice for top rate-seeking expatriate savers even more.


Wall Street journal writer interviews Landsbanki Guernsey Depositors

He also speaks to Guernsey’s Chief Minister Lyndon Trott & Director of banking at the Guernsey Financial Services Philip Marr


Michael Casey who writes for Dow Jones and Wall Street Journal, was in Guernsey on Tuesday 18th May 2010 to speak to Landsbanki depositors, he also spoke to the Chief Minister Lyndon Trott and Director of Banking at the GFSC Philip Marr


He stated that, he had heard lots of different stories from people who feel they were let down and their trust was betrayed and that is a very global feeling right now.”

Mr Casey was interested in the links to the collapse of Landsbanki Guernsey and the depositors reactions to losing their money. He said that the overwhelming thing that came across was how much it had shaken their faith in the banking system. Its interesting how conservative and mistrusting they now are of banking.


Web site comment:

If ever there was a jurisdiction where the above statements are true, it must be Guernsey, where the Landsbanki Guernsey depositors have been totally let down by their Government and Banking regulator. Let us hope that Michael Casey’s book adds to the growing criticism of Guernsey’s Government and their failure to instigate a fully independent inquiry into the whole affair.


Read the Guernsey Press article and add your comments to the forum.



Sigrun Davidsdottir’s Icelog

Iceland pre-and post-collapse

Does anyone remember Icesave?


It’s as if Icesave has completely evaporated from the agenda in the three countries involved – Iceland, the UK and the Netherlands – but the accounts haven’t yet be settled. Iceland still owes money to the UK and the Netherlands as the two countries compensated the deposit holders according the EU insurance guarantee regulation.


Read more from Sigrun's webpage and please add your comments to the forum at the bottom of her page to show that Icesave and Landsbanki Guernsey are still at the top of the list for the 1600 depositors who have still lost a large proportion of their savings.

No Freedom of information law for Guernsey

29th April 2010

Guernsey won't be getting a Freedom of Information Law anytime soon. The policy council has been looking at the idea for two years. Deputy Lyndon Trott says a law's unlikely, and even a code of practice may take some time.

In Britain, the Freedom of Information law can be used to obtain information on just about anything: from how your local restaurant faired in its health and safety inspection, to being the key to uncovering the MPs expenses scandal.

Even here in the Channel Islands it's come in handy. The Guernsey Landsbanki Depositors group put in a Freedom of Information request with the UK Government, only to find there was no evidence of meetings between the States and the UK Ministry of Justice, something Deputy Lyndon Trott said wasn't true.

Channelonline, read rest of article 


Comment: Since Landsbanki Guernsey went into administration on the 7th October 2008, some eighteen months ago, The Depositors action Group have continuously attempted to find out what was going on between Guernsey Government and the Ministry of justice and the UK Treasury Committee. The have also tried to ask the Guernsey Financial Services Commission a number of questions regarding the lead-up to putting Landsbanki Guernsey into administration. To say they have been blocked at every move , would be an understatement and Guernsey's Government and the GFSC have failed  to answer any requests. That is why the LGDAG eventually went to the UK under the Freedom of information Act to try to gain some answers. What those answers showed was that Guernsey's Government appeared to be doing very little and later this analysis was proved correct when select committee reports came out from the UK Treasury, Isle of Man Select Committee, UK Ministry of justice select Committee & the latest, the 2000 page report from Iceland.

Guernsey is in serious need of a strong "Freedom of information law" as at present it is opaque and secretive and everything is confidential, but it looks as though the Chief Minister has managed to delay it again. I wonder why?


Landsbanki Guernsey

Depositors can only expect to recover between 85% and 90% of their deposits

over a number of years

 without Guernsey Government intervention.

Its time for select committee

type inquiry.




Reasons for not depositing money in Guernsey


See the reasons and analyse carefully,

Guernsey depositors for the most

part are kept in the dark when

the small print is changed.


How many of you read the small print?


How many of you know how inadequate the

new depositors Compensation scheme is?



Uk Government slammed over Landsbanki Crisis,

But Guernsey Government failed to tell anyone

they were doing nothing

Channel TV online





By Iain Martin, Citywire

21st April 2010

Read the full article


 A 2000-page Icelandic report into the 2008 banking crisis which almost bankrupted the tiny island country reveals the behind-the-scenes talks between the FSA, the Icelandic government and Landsbanki. It shows the FSA waited seven months before pulling the plug on Landsbanki, of which Icesave was the online savings arm, despite being faced with mounting evidence that the bank was not strong enough to survive.


The report sets the record straight but does nothing for the UK and Dutch governments, which are still owed £3.4 billion by Iceland, or the British consumers left out of pocket after saving with Kaupthing Singer & Friedlander Isle of Man and Landsbanki Guernsey.

Newspapers began questioning the stability of the Icelandic banks in February 2008..........

Online saving customers pulled around £1 billion, or 20% of its deposits, out of Icesave between 10 February and 22 April 2008. The outgoing flow of funds from Icesave was so rapid that in March 2008 Landsbanki was just six days from collapse, according to the report...............

 ‘And is that because the regulatory authority abroad is so stupid or the loans so bad?’ To which Árnason then replied: “Probably both”...................

The London branch of Landsbanki was closed on the evening of 6 October and the Icelandic government nationalised Landsbanki on 7 October. ................

Conservative MP Michael Fallon questioned why the FSA had not taken action earlier. ‘The FSA have questions to answer as to why they didn’t alert retail investors,’ he told the Daily Mail. ‘We had too feeble a regulator.’ (Comment: so did we in Guernsey)........................

The financial regulator, FME, was slammed for being inexperienced andunderstaffed while the central bank failed to keep sufficient foreign currency reserves to back its swollen banks. The deposit guarantee fund had only set aside £88 million to cover £13.6 billion worth of deposits.(Comment: Is this why Landsbanki Guernsey’s guarantee has not been honoured and they have been turned down as priority creditors?)


and failed in their own due dilligence.

26 April 2010

The article to the left is a link to the Citywire précised account of the 2000 page Icelandic report on the 2008 banking crisis. Just another report that vindicates the allegations that have been made by the Landsbanki Guernsey depositors Action Group (LGDAG) since Landsbanki Guernsey was put into administration on the 7th October 2008 and 1600 depositors lost £117 million. To date eighteen months down the road only 67.5% of their money has been returned. Guernsey’s Government still remains the only Government in the developed world who has failed to assist their depositors and the Guernsey Financial Services Commission continues to wriggle and fails to answer the questions regarding their due diligence prior to Landsbanki Guernsey being put into administration.

Every recent report, The UK Treasury Select Committee report, The Ministry of justice select Committee report, The Isle of Man Select Committee report and now the Icelandic report, back up what we have been saying all along, There was regulatory failure right across the Board including the GFSC. Its time this self serving promontory report was put to one side and a completely independent select Committee type report instigated.

Certain translated areas of the Icelandic report can be found HERE



On the left we have the Director General of Guernsey's Financial

Services Commission, Peter Neville, at the time landsbanki Guernsey was put into administration. (He retired in July 2009)


On the right Guernsey's Chief Minister, Lyndon Trott, who was

Chief Minister at the same time and who attempted a one man band

act over Landsbanki Guernsey and excluded the Island Government who

were often updated by the Landsbanki Guernsey depositors Action

Group with information before they received it from the CM.


Check out the Landsbanki facebook site

The Cartoon to the left and repeated from further down the page was produced well before the Ministry of justice report came out, in fact around the 15th January 2010.


What it goes to prove is that at that time the Landsbanki Guernsey depositors were already well aware that the States of Guernsey were haveing their strings pulled by the UK Treasury, as were the Isle of Man's parliament. The report clearly showed this to be a fact and proved that our comments all along, that in fact the Guernsey Government were doing nothing, except producing a lot of hot meaningless air, were vindicated.

Their visit to iceland in August 2010 was at a time when the Landsbanki depositors were applying a lot of pressure regarding them doing nothing and the visit to Iceland helped get them off the hook. Since that visit they have gone totally silent and fail to answer correspondence in any meaningful way.

The Landsbanki Guernsey Depositors are still pressuring them for an independent select Committee type inquiry.

The GFSC on the other hand have done even less.We were led to believe that they wrote a letter to iceland in October 2008 after landsbanki Guernsey had been placed into administration. No one has seen that letter, no one has been informed of a reply and the GFSC couldn't wait to get their own inquiry into themselves instigated around January 2009 under their own terms of reference and paid for by themselves, to clear them of any "bad faith"

As far as depositors are concerned that's the last we have heard of them, negative dismisive replies to a number of letters and nothing else.

Another reason for a fully independent Select committee inquiry, after all the Isle of Man have held one, The UK Treasury have held one and now the Ministry of justice have held one.

What is Guernsey hiding?

Why won't the GFSC answer any questions?

Why is one advised to see an advocate regarding questions on the Depositors Protection scheme?



Published: 7:04PM BST 18 Apr 2010 - Telegraph

FSA shamed by inaction over Iceland

Sir - In 2005 as chief executive of Singer & Friedlander I explained to the Financial Services Authority why the Icelandic bank, Kaupthing, should not be allowed to take over Singer & Friedlander as its management was not "fit and proper", and so did the rest of the board. We were all ignored.


Telegraph 23rd April 2010 By Leah Hyslop

Commons report supports Landsbanki Guernsey Savers

Savers with Landsbanki Guernsey who lost money during the Icelandic banking crisis have welcomed a report from a Commons committee which criticised the UK government's handling of the situation.


Neil Dickens, chairman of Landsbanki Depositors Action Group (LGDAG) said: "We welcome any indication that the UK will make more effort to represent Guernsey's interests, and are pleased to see proof that our interests were not always taken seriously enough. However, in this case it feels a little like shutting the stable door after the horse has bolted."

He added however that the group were equally unhappy with the behaviour of the Guernsey government and Guernsey's supervisory financial authority, the Guernsey Financial Services Commission (GFSC.) "Unlike the Isle of Man's government, which has gone out of its way to help victims of the Icelandic crisis, we feel both Guernsey's government and the GFSC have let us down. They told us that there were parental guarantees in place for Landsbanki, which we have since found out to not be true, and have left us without any clear guidance.




 Icelandic ash reaches Guernsey

17th April 2010

According to latest Met reports the ash cloud from the icelandic Volcano Eyjafjallajokull is now covering the UK and extending down into Northern France accross the Channel Islands. Predictions show the cloud persisting over the coming weekend.

Some local flights have been allowed to continue but these are low altitude flights and tend to be inter Island. Most high altitude flights from the UK have been suspended.

It seems that Iceland is determined to once again hit Guernsey financially, although it must be said by a natural disaster on this occasion.

Last time it was in October 2008 when 1600 depositors in Landsbanki Guernsey, an Icelandic Bank, was put into administration and depositors lost £117 million. To date the administrators have recovered 67.5% of their money but Guernsey's Government have failed to assist the depositors in any way, in fact they are the only Government in the developed world to totally fail their depositors.

Despite repeated demands by the depositors for a select Committee type inquiry into all the circumstances, Guernsey's Chief Minister Lyndon Trott fails to respond to the many questions that remain unanswered, in fact he has still not arranged the Public meeting he promised publically to the depositors in February 2009.



Landsbanki Guernsey Administrators update

Today 7th April 2010 Deloittes have issued an update

on the state of play for the Landsbanki Guernsey Depositors who lost £117 million in October 2008 and are still owed 32.5% of their



Other websites that highlight the Landsbank Guernsey situation:


"Extreme negligence" led to icelands Financial woes: probe

By Rosa Brynjolfsdottir (AFP)  (12th April 2010)

REYKJAVIK — A much anticipated "Truth Report" published Monday highlighted "extreme negligence" by former Icelandic leaders and explosive bank growth as the main causes of the 2008 financial crisis that crippled the country's economy.

Former prime minister "Geir H. Haarde, *Arni M. Mathiessen, former finance minister, and Bjoergvin G. Sigurdsson, former minister of banking, showed extreme negligence before the fall of the three banks in October 2008," the Special Investigation Commission (SIC) wrote.

The report, more than 2,000 pages long, was commissioned by lawmakers at the end of 2008, shortly after Iceland's three major banks went bust, dragging down its once booming financial sector and sending the Icelandic krona plunging.

*Comment not part of article: Guernsey's Chief Minister, Lyndon Trott, valued his association so much with Arni M. Mathiessen that he proudly informed the States of Guernsey that he had been given his personal telephone number. Iceland was not the only jurisdiction with extreme negligence and total failure towards its depositors.

 Read rest of article


Ministry of Justice, Select Committee Report shows Landsbanki Guernsey Depositors were correct over lack of action on their case. 

30th March 2010

An interview with a depositor on radio Guernsey

(Now removed from BBC iplayer )

See report by The International Advisor 6th April 2010


Read the circulation to all Deputies by the Chief Minister/Policy Council


An extract from the Ministry of Justice report released 30 March 2010 On the “Crown dependencies.”


84. A recent example was the role of HM Treasury in representing the interests of the UK on the one hand, and Guernsey and the Isle of Man on the other, in its negotiations with the Icelandic authorities during the banking crisis. In its written evidence, the Guernsey Government stated that the UK Government apparently prioritised its own interests over those of Guernsey in negotiations with the Icelandic Government. In order that they might put their case directly to the Icelandic Government, the Ministry of Justice stated that HM Treasury facilitated direct contact between the Islands and the Icelandic authorities.


The Guernsey Government, however, criticised HM Treasury for a delay in sending a letter to the Icelandic authorities requesting that they meet with a delegation from Guernsey, this delay resulting in the letter being sent only after the Guernsey representatives had made their visit to Iceland.


On a more general level, the Guernsey government expressed serious concerns about the extent to which its interests are represented internationally, given that its representatives are normally excluded from relevant negotiations.


COMMENT. Circulated to all Guernsey deputies on the 31st March 2010

The above is only a small extract, from a report, that small extract confirms what the Landsbanki Guernsey depositors’ Action Group have been saying all along. The Isle of Man Depositors’ Action Group for Kaupthing, Singer & Friedlander covers it in even more depth. Now eighteen months down the line and this information is only just coming out, because Guernsey Policy Council had to give evidence and shows the complete shambles that was going on between the Guernsey Government, the MOJ and the UK Treasury. The Chief Minister, over the last eighteen months has refused to meet the depositors and explain the situation, whilst all the time the UK Treasury, which we had said for some time, was dangling him on a string while UK interests were progressed to the detriment of the Landsbanki Guernsey Depositors. Far from ensuring everyone was treated equally, as the Chief Minister had told us the UK Treasury had assured him, the UK Treasury were getting preferential status for themselves and the Netherlands whilst Landsbanki Guernsey depositors we left out of the equation and have been turned down for that status. The Isle of Man Treasury Minister, Alan Bell put it well at their own select committee inquiry. ”We were collateral damage..” to the UK Treasury

This shows Guernsey Government in very bad light and as secretive and manipulating in its treatment of the depositors within its jurisdiction and although blame has to also be laid at the UK’s feet our politicians showed total naivety in their dealings with them.

Landsbanki Guernsey Depositors asked for an independent “select Committee” style  inquiry to be held in Guernsey to review the actions of  the GFSC and Guernsey Government both prior to and after, Landsbanki was put into administration and it is now becoming increasingly evident why it was so hostile to this request. While every other jurisdiction has transparently explained the facts, the Guernsey government and the GFSC continue to obfuscate while cowering behind purely self-serving claims of confidentiality.

The report highlights many other totally unsatisfactory areas and will be studied in length over the next couple of weeks.

The full report can be seen here

The full witness submissions can be seen here



GFSC say all Guernsey Bank Guarantees and letters of Comfort are not legally binding

Guernsey & Isle of Man were collateral damage to UK Treasury

Guernsey depositors now responsible for their own due dilligence

Read the report  (new)

Landsbanki cash recovery for the administrator, not the States

Landsbanki depositors are the worst off of the lot.

Guernsey regulator tells savers: Onus is on you to check stability of banks.


"Be aware that protection for offshore savings

might be limited."

A best buy "offshore selection" table compiled by Moneyfacts in the Mail on Sunday (28mar2010) is issuing a health warning for those that are looking to deposit their savings offshore. They are telling depositors to be aware that protection may be limited.

Although they don't specify, they are obviously referring to Guernesy's current Depositors Protection Scheme and the fact that the Guernsey Financial Services Commission now require depositors to carry out their own due dilligence on all Guernsey's financial products and those supplying them. The GFSC appear to be abrogating any responsibility for the Licences they issue.

Read more on comments on the Guernsey Depositors protection scheme



Guernsey drops out of the finance top 20

GUERNSEY is no longer among the world’s top 20 finance centres, a new report has found.

The island’s financial services sector has fallen to 22nd in the biannual Global Financial Centres report’s rankings, compiled by Z/Yen Group for the City of London.

Read more

Read z/Yen report, facts on page 8

Tough Jersey regulator forces Kleinwort Benson move

18 March 2010


It looks we've got strict rules for finance in Jersey to thank…, for a mini-jobs boost here. Kleinwort Benson are scrapping 30 posts in our sister island as their banking business relocates to Guernsey. It will see the company take on more staff here. Kleinwort Benson was recently taken over by RHJI Limited and they weren't up to the standards of Jersey's regulator. But Managing Director Angus Taylor's pleased Guernsey is prepared to play ball.

Landsbanki islands hf, we were informed also wouldn't have been up to the standards of the Jersey regulator, but the GFSC allowed it to buy Cheshire Guernsey in August 2006. Perhaps that says something for the GFSC as it is now allowing RHJI to move into Guernsey via Kleinwort Benson, lets hope the same scenario doesn't repeat itself as with landsbanki. The GFSC is now telling us all that Bank guarantees, letters of Comfort and Bank undertakings have no legal backing and are worthless and that depositors have to carry out all their own due diligence on deposit accounts. One wonders what responsibilities  the GFSC actually have, none I suspect.


Guernsey regulator tells savers: onus is on you to check stability of banks   by Iain Martin | 08:00:00 | 12 March 2010

Read article






Guernsey's Government is making a fool of itself

again !

Two polls show that Islanders are against the Spruce requete to try to reintroduce the Suez incinerator


Guernsey press Poll   78% say No

       Submarine Poll   78% say No

6th March 2010.  Iceland votes against repayment to UK & Netherlands.


Worst affected depositors - Landsbanki Guernsey

(Put your comment on the forum)

 But the worst affected people – even more so than Icelandic and British taxpayers, are the Landsbanki Guernsey depositors, who have been discriminated against by their Government. Amongst all the depositors who suffered in this crisis. some 18 months down the road and they have still not received any assistance from the Guernsey Government.


Landsbanki Guernsey

Depositors can only expect to recover between 85% and 90% of their deposits without Guernsey Government intervention

Guernsey retail bank deposits fall again

5th March 2010

The total value of bank deposits in Guernsey fell again in the last quarter of 2009. Over the three month period bank deposits drops by just over 2% and year on year they fell by more than 25 %. But Guernsey Finance boss Peter Niven says thats mostly down to one area in particular Swiss fiduciary deposits which have taken a big hit. If you take those out of the equation he says the value of Guernsey deposits actually went up.


They have now been blaming Swiss fiduciary deposits for the 25% fall for the last year. It couldn’t be anything to do with the lack of trust in Guernsey’s retail banking sector since Landsbanki Guernsey went into administration and the States and GFSC did absolutely nothing to assist depositors, unlike every other jurisdiction in the world, as well as having a totally inadequate depositors compensation scheme, so who in their right minds deposits money in Guernsey.



Reasons for not depositing money in Guernsey


See the reasons and analyse carefully,

Guernsey depositors for the most

part are kept in the dark when

the small print is changed.


How many of you read the small print?


Retired GFSC Director General fails to attain the position of Jurat of the Royal Court in Guernsey (24 Feb 2010)

Peter Neville who came to Guernsey in 2002 and took up the position of Director General of the Guernsey Financial Services Commission, today faced an election for the position of Jurat in Guernsey's Royal Court.

Landsbanki Guernsey Depositors will remember Mr Neville from when Lansbanki Guernsey was placed into administration on the 7th October 2008 and the apparant total lack of effort by the GFSC to assist depositors. Mr Neville took retirement in mid 2009.

The position of Jurat of the Royal Court is a prestigious one and normally taken by people who have served the community and shown a great degree of integrity and judgment during their lives.

Todays election was between two canditates and held by the Guernsey States of Election, which consisted of 100 people, including The Bailiff, Jurats, HM Procurer HM Controller, The Peoples deputies, The Douzaine representitives, etc.

Mr Neville only attained 41/100, which immediately rejected him from the race and Mr McCathie went through with 59 votes.

At present there is much controvosy over the GFSC's role under Mr Neville before and after the landsbanki fiasco and how it performed in the lead-up to the putting into Administration of Landsbanki Guernsey and as seen by the other articles on this site, more evidence is coming out to support that.


Mr Peter Neville who today 24th February 2010 failed to attain the position or Jurat of the Royal Court in Guernsey



11th February 2010

Reading some of the reporting in the isle of man select Committee inquiry into Kaupthing, Singer & Friedlander, the parallels become obvious with the situation of the Landsbanki Guernsey Depositors and Guernsey's Chief Minister's dealings with the UK Treasury.

It seemed from the date of Landsbanki Guernsey going into administration, that Guernsey's Chief Minister Lyndon Trott was continuously telling the Landsbanki depositors and public alike that he was working tirelessly behind the scenes and was in continuous contact with the UK Treasury, who had agreed to represent Guernsey  and ensure that all depositors were treated equally.


The Isle of Man, in its inquiry, is starting to show a different side to the story, a side that shows Guernsey's Chief Minister was probably being humoured, while the UK Treasury was sorting out their own sorry mess in the UK. There is absolutely no proof whatsoever that they did anything for Guernsey at all and it appears from the Isle of man inquiry that they were in the same boat. There were no minutes from meetings, no notes taken and the Chief Minister told everyone the meetings were confidential. Not only confidential it appears but ineffectual.


Read the relevent extract that helps form the above conclusion 



15th February 2010

The Winding up Board has decided to reject your Claim, was the message received by Landsbanki Guernsey Depositors in an email on the 15th February 2010.

The depositors had filed claims against Landsbanki islands hf in October 2009 under a guarantee issued by that company when they took over the Cheshire Building society in 2006. The guarantee stated that:

Landsbanki Guernsey ltd is a wholly owned subsidiary of Landsbanki Islandshf. Deposits made with Landsbanki GuernseyLtd are not covered by the UK FSCS. Landsbanki Islands hf has given an undertaking to discharge those liabilities of Landsbanki Guernsey Ltd which it is unable to discharge from its own assets, whilst it remains a Landsbanki Islands hf subsidiary.

To back this up a guarantee legal document had been drawn up but it appears never signed by the Chief Executive Officers of Landsbanki Islands hf, and Landsbanki Guernsey was allowed to operate and display the guarantee on all of its literature, thus giving depositors a false sense of security and deceiving new customers, all under the noses of the Guernsey Financial Services Commission who at present deny any responsibility.


Read the Depositors press release










Read Press release by Landsbanki depositors group


Read the full letter sent to Guernsey Deputies 6/7 Feb 2010

Isle of Man select Committee inquiry

Wednesday 20th January 2010



The Select Committee’s remit is:

(1) the cause of the collapse of Kaupthing Singer and Friedlander (IOM) Limited;


(2) the role of the Financial Supervision Commission in ensuring the proper management of

      Kaupthing Singer and Friedlander (IOM) Limited to protect depositors’ funds;


(3) the credibility of the Depositors’ Compensation Scheme; and


(4) any other relevant matter.


The Committee is currently looking at the first and second part of its remit and, when it has reported to Tynwald, it will turn to the third part of its remit.

The Select Committee will take oral evidence from Mr Allan Bell MHK, Treasury Minister at 3:30pm on Monday 25th January 2010.

The Select Committee has previously taken oral evidence from Mr John Aspden, Chief Executive of the Financial Supervision Commission and the directors of KSF (Isle of Man) Bank Limited.

Further oral evidence sessions will be scheduled in due course.


25 January 2010, Icelandic Film on the Banking Crisis. Documentary produced by Gunnar Sigurdsson, who came to Guernsey to interview depositors Oct 2009. This is the trailer to his Film,"Maybe I Should Have. " A full version will be produced with subtitles


See his page, comments and photos on his visit to Guernsey and his impressions. Click here.


It would appear that his film has been very well received in Iceland as it hits hard at those responsible for the crisis.


The truths are starting to emerge at the Isle of Man select Committee inquiry on Kaupthing Singer & Friedlander. There are amazing similarities to Landsbanki Guernsey.


Alan Bell, the Treasury Minister is being asked very poignant questions over dealings with the UK Treasury and the UK Financial Services Authority and has been asked to produce the papers and notes on those meeting. The Isle of Man appears to be leading the way in honesty and transparency, unlike Guernsey's opaque and secretive Government

Link to the article on Alan Bell's evidence

 The signs were there for the GFSC to recognise an overheated market 

Extract from Financial Times


By Martin Wolf

Published: January 14 2010 20:24

Since the banks had turned Iceland into a hedge fund, with massive short-term foreign currency liabilities used to finance risky long-term assets, the economy was doomed. According to the September 2009 economic survey by the Organisation for Economic Co-operation and Development, between 2007 and 2010 the fall in real consumption will be close to a quarter and that of domestic final demand almost 30 per cent. This is a depression. The burden of debt and loss of purchasing power are worsened by the collapse of the krona, which has lost more than half its value against the euro since July 2007.

Read More



Just how much did the Ministry of justice , The Treasury Committee

and the Financial Services Authority actually do to assist Guernsey's

Government, and how easily led were Guernsey's Government

and the Guernsey Financial Services Commission in thinking they were being supported when in fact the UK were looking after themselves

and doing little or nothing.


Landsbanki Guernsey's Offices

20th Jan 2010

Read Mark Ashbey's full article on News Vine,

with comments, link at bottom

A Clear statement made on Guernsey's failure as a Financial Centre for depositors, unless Guernsey Government acts on the information supplied to them regarding the Guernsey Financial services Commission.


On reading the correspondence between the Chief Executive of the FSA and the Director General of the GFSC that is posted on the HM Treasury Select Committee website, I came across the following important information which I thought was worth highlighting in order to remind the Guernsey authorities of their unshirkable responsibility towards savers that placed their trust in a Guernsey-regulated bank. On 29 January 2009 the FSA's CEO wrote:



The full article and comments can be found at News Vine by following the link below.

Read full Article



Sunday 10th January 2010 Sunday times and Independent mention Landsbanki Guernsey, two articles in the Sunday papers are relevent Read More

23 January 2010, Investec Trust (Guernsey) submits creditors claims totalling £2.26 billion against Kaupthing, Rowena Mason writes Telegraph.

 An e-mail is sent out to all Guernsey Deputies

 introducing them to the New Documentary produced

on Landsbanki Guernsey Savers who lost their money when Landsbanki Guernsey went into

Administration on the 7th October 2008 and reminding them of Guernsey's lack of action.

9th January 2010

Dear Guernsey Deputy

It is now fifteen months since Landsbanki Guernsey went into administration, a Guernsey Financial Services regulated bank.  To date Guernsey’s Government, unlike all other Governments, has failed to assist the 1600 depositors in any way whatsoever, 600 of whom are Guernsey Taxpayers.

Even after the anticipated distribution in January 2010, depositors would still be waiting for one third of their savings back, not counting lost interest and income. The administrators have intimated a final return of possibly 85-91%, this could take some years to materialize. 100% will not be attained without Guernsey Government intervention. Proof has been produced to all of you that there was a clear lack of due diligence by the GFSC, a matter we are strongly recommending you seriously review.

A new documentary has been produced about some of the Landsbanki Guernsey Savers and the hardships they have endured. This documentary has gone world-wide through and various other sites. Please take the opportunity to follow the link below and watch this short film for yourself. We would welcome your comments after viewing it. 


                            ( For bestresults press the full screen button on the small screen that appears)

To date, 17th January 2010 only four Guernsey Deputies have had the decency to reply, their replies can be seen on the secure side of the Landsbank Guernsey site at  (then members log in)

Under e-mail sent to all Deputies introducing John's Documentary


  Landsbanki Guernsey Savers

In October 2008 the financial tsunami which

had started with the sub-prime crisis in the USA

washed up on the shores of Guernsey Island, a

British Crown Protectorate situated 30 miles off

the coast of France.

See the documentary

seen here


Download the interview with Radio Guernsey on why the documentary was produced


Landsbanki Depositors

Deloitte Q & A's January 2010

12.5p payout but will never reach 100% without Government intervention

10th January 2010

Will any repayments be made to depositors in 2010?

The Joint Administrators have now made a third payment of 12.5p in the pound available to depositors. The accrued interest on the ring fenced funds from the 25p in the pound repayment since it was made available on 5 August 2009 to the date it was paid has also been made available to depositors at this time.

The Joint Administrators do not expect to recover 100 percent of the deposits held with LIHF and Heritable due to the extremely difficult market conditions, the Joint Administrators do not expect to recover 100 per cent of the balance held in the Loan Portfolio.

The Joint Administrators therefore believe that the only way for depositors to receive all their money back is if the Bank receives aid from a Government or other third party or the Bankor its depositors are successful in their legal actions in Iceland. Further, the Chief Minister of Guernsey has stated that he will not use taxpayers’ funds to support any such pay out to depositors.


5th January 2010

Icelands President Mr Grimsson is to allow a referendum on British, Netherlands repayment



3rd Jan 2010,

Petition as Icelandic Population

rebels against payments

to Britain and the



31 December 2009

 Iceland approves Icesave repayment deal

Iceland's parliament approved plans to repay £3.4bn lost by savers in Britain and the Netherlands when the

Country's banking system collapsed.


Note from Deloitte's website

re effect on Landsbanki Guernsey

6 January 2010

Creditors may have heard that the President

 of Iceland has vetoed the agreement

between the Icelandic Government

and the UK and Dutch Governments

 in relation to the repayment by the

 Icelandic Government of the monies

paid to depositors in IceSave by

 both the UK and Dutch Governments

(“the IceSave Agreement”). Further

the UK and Dutch Governments

will continue to receive priority status

in the winding up ofLandsbanki

 Islands hf as the law currently stands.


12.5p confirmed for January 2010


Read More


The new documentary is out on Landsbanki Guernsey and can be seen here

 It is now some 15 months since landsbanki Guernsey was placed into administration

and even with the 12.5% being returned to depositors in January 2010 it will mean

that only 67.5% of their original deposits will have been returned. Plus they will have

lost all the interest from those deposits.

Had there been an adequate Depositors protection scheme in place

(unlike the present one), the majority of depositors

would have already been paid back in full.

Guernsey's Government have still totally failed the depositors and

continues to do so, it remains the only Government in the world

not to assist its depositors in any way.

  Landsbanki Guernsey Savers

In October 2008 the financial tsunami which

had started with the sub-prime crisis in the USA

washed up on the shores of Guernsey Island, a

British Crown Protectorate situated 30 miles off

the coast of France.

seen here




Isle of Man has inquiry into Kaupthing, (started mid Nov 2009) in the form of a Select Committee

Guernsey refuses a public inquiry into Landsbanki Guernsey being placed into Administration

even though proof of a lack of "due dilligence" by the GFSC has been shown.


Tynwald Select Committee
The Tynwald Select Committee has been taking evidence regarding the events leading up to the collapse of the bank. For the information of creditors, transcripts of the oral evidence given by the former Directors of the company and the Financial Supervision Commission are attached. The Committee's report is expected to be published in March 2010.

Tynwald Directors Oral Evidence 


Tynwald FSC Oral Evidence  

17th December 2009 Further update from Deloitte on next report & Payment

Comment on Landsbanki Guernsey on Mark Asheby's Forum



Reasons for not depositing money in Guernsey




Guernsey Banking deposits for third quarter down

11.8 % from one year ago.



Landsbanki Director in dock

7th Dec 2009


               Landsbanki Guernsey Depositors will get another 11-12.5p in January 2010


the Joint administrators for Landsbanki Guernsey announced on Thursday 17th December 2009 that there would be a further payment of between 11-12.5p in the pound made in January 2010. This would bring total payments to date to between 65 and 67p in the pound.

While this is good news for depositors one has to remember that Landsbanki Guernsey was placed into administration on the 7th of October 2008 and depositors are still owed to this date 17th December 2009, 45% of their original deposits. It must also be noted once again that Guernsey's Government are the only Government in the world to totally fail their depositors and that The Guernsey Financial services Commission still hides behind confidentiality to cloud enquiries into its lack of due dilligence during the lead-up to landsbanki Guernsey's Administration, as the article below clearly shows. Had it not been for the hard work put in by the administrators, depositors would not, I am sure, be looking forward to the payment in January.


The Administrators in the last paragraph of their statement ( see link at top of page)  say " The Joint administrators continue to pursue prudently the bank's claims in Iceland with the assistance of the States of Guernsey." What assistance, the LGDAG have been asking the Chief Minister right from the beginning what Guernsey's Government have been doing to assist the depositors. The Chief Minister has always failed to elaborate, except to say that he has regular meetings with UK Treasury who had agreed to represent us in dealings with Iceland. We haven't seen that happen, the Uk treasury do not really want to know and refer the issue back to Guernsey Government as their problem ("Landsbanki Guernsey Ltd is the responsibility of the Guernsey Financial Supervision Commission and therefore arrangements for depositors in Landsbanki Guernsey are a matter for the Guernsey Government.")  Eventually, after much pressure, The Chief minister went to Iceland for three days on the 6th August 2009. Landsbanki Depositors and States Deputies for that matter are still waiting for sight of his full report on that visit. We have heard nothing since except for a short statement by the Policy Council. On that visit he took with him an advisor on Iceland, Alastair Sutton of White and Case, based in Brussels, we have heard no more from this gentleman nor seen a report on the visit. Is Guernsey Government still retaining him as an advisor on Iceland? Has the Chief Minister followed up regularly with the contacts he made in iceland? Guernsey has totally failed its depositors and in doing so failed itself.




Guernsey's Chief Minister

Lyndon TROTT has failed

to respond

to the new evidence

in the report below.

28th November 2009

Some Guernsey deputies, who responded, have stated that the questions

asked in the document are very valid and require answers.

The report below was sent to the Chief Minister and all

Guernsey Deputies around the 17th October 2009. Receipt of that

report has never been received by the LGDAG from his office. On

the 2nd of November 2009 a further letter was sent, referring

to the previous letter and report and requesting an early

response. Nothing has been received. One has to say that this

type of behaviour is becoming typical of certain areas of

Guernsey's Government and is unacceptable. This can only mean

one thing. The proof demonstrated in the report has hit a

raw nerve in showing the lack of due dilligence by Guernsey's

Financial Services Commission in the leadup to Landsbanki

Guernsey being put into administration on 6/7th Oct 2008.


Guernsey's Chief Minister and the Policy Council appear frightened

to accept that and choose to ignore it in the hope that it will go

away. By not answering perfectly legitimate questions or even

acknowledging receipt of the report, they are in fact digging

a hole for themselves that will get deeper and deeper. 1600

depositors placed their money in deposit accounts with a bankregulated by the Guernsey Financial Services Commission, Landsbanki Guernsey, 600 of

those are Guernsey taxpayers and can quite rightly demand answers

to those questions.


Guernsey Government remains the only Government in the western

world who have totally failed their depositors and hung them out

to dry. 



17th October 2009 A New Report outlining the failures of the Guernsey Government, the FSA and the GFSC has today been submitted by The Landsbanki Guernsey Depositors Action Group to Guernsey's Chief Minister, Lyndon Trott and delivered to all Deputies. The report demands a Public Enquiry.


The report demands a Public enquiry into the actions of the Guernsey Financial Services Commission in the months leading up to Landsbanki Guernsey being placed into administration, many questions are asked as to the lack of due dilligence carried by the GFSC and their communications with the FSA. It also calls into question the actions of the Guernsey Government and does not accept that the report by Promontary, instigated by the GFSC under their terms of reference and paid for by them, shows a true reflection of the situation in the lead up to landsbanki's Administration.



Click here to read the covering Letter and the full report .


Guernsey Press report, "Landsbanki Depositors demand Public Enquiry".

Depositing Mon ey in Guernsey can seriously damage your wealth.

Ask any Landsbanki Guernsey Depositor

The site administrator has started a blog and although Landsbanki Guernsey will remain the main theme , other issues regarding Guernsey will be discussed. It will be open to all to read, but contributions are by invitation only. If you are a Landsbanki Guernsey Depositor and would like to contribute, please contact the Administrator by email in the first instance at so as credentials can be established.

Follow this link to, Site Administrators blog


A New interview on "The Bank that sank" website, just follow the link.  New Interview

Landsbanki Guernsey

Depositors can only expect to recover between 85% and 90% of their deposits without Guernsey Government intervention

Click here to see a larger image of the cartoon. ( unfortunatly the resolution has been reduced during upload and all the text cannot be read.)

The cartoon takes a satirical look into the need  for the now  unrestricted, exponential growth in the Policy Council's budget to feed the travel hungry Chief Minister of Guernsey at the taxpayers expense. These travels have now become obsessive to the detriment of his Guernsey responsibilities and disproportionate to the benifit  gained by the people of Guernsey. He is in fact working, at the taxpayers expense, for the Financial Industry and they should be paying the bills.

If you would like to receive an e-mail attachment of the cartoon in A4, which is fully readable.

 click here to take you to send space, ignore the advert and go to the bottom of the page to download a high resolution version





Reply from HM Treasury ( 18th November 2009)

At last a response to Chairman John McFall's question to Alistair Darling during the Treasury Select Committee's hearing.


One of our members asked the question on the 5th october 2009, he has only just received a reply, reads as follows;



Thank you for your email of 5 October 2009 to the Enquiry Unit about Landsbanki Guernsey Ltd. I am sorry for the delay in responding to you.

As you will be aware Landsbanki Guernsey Limited was not a subsidiary of a UK bank, but of an Icelandic company. As such, 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.

I can confirm that the Government of Guernsey has not made any request to HM Treasury for a loan to enable repayment of depositors with Landsbanki Guernsey Ltd.

Yours sincerely,

Correspondence and Enquiry Unit
HM Treasury



I don't think there are any surprises there, but it does once again emphasise that the GFSC and the States of Guernsey are the authority for sorting this mess out, and of course they have continually attempted to evade any responsibility in the matter.


The report submitted to all Deputies and the Chief Minister on the 17th October has still not received any response, not even an acknowledgement. A reminder was sent early November, still no acknowledgement. This report seriously questions the actions of the GFSC in the runup to Landsbanki Guernsey being put into administration and a number of Guernsey Deputies have replied saying that there are questions in the report that need answering. Failing to answer those questions shows guilt on both Guernsey's Government and the GFSC .

Landsbank Guernsey will not go away and Guernsey still remains the only Government to fail its depositors totally.




Trott's weak response to the Anniversary Demonstration


On the first Anniversary of the Administration of Landsbanki Guernsey ,

 (7th October 2009) Guernsey's Government remain the only Government in the Western World to totally fail their Depositors.

"It's too late for some"

Guernsey Press 8th Oct 2009


Landsbanki Guernsey savers have turned their backs on the States this
lunchtime, literally.

The symbolic gesture happened at 12.30pm on the Royal Court steps, as
depositors mark the one-year anniversary of the bank's collapse.

Their action group say they want to show their total lack of confidence in
the local government.

They will also be holding a one-minute silence to remember savers who have
died in the last year, and those who have lost their entire life-savings.

A peaceful demonstration.


5th Nov 2009

British Irish Council Conference  instead of Bowel Cancer screening program for 6000 Guernsey Residents. Will cost lives

5th Nov 2009

The Hunt Review (final report released 5th Nov 2009) Yet another report on Guernsey and its offshore finance industry. This one suggests that Guernsey should do away with its retail banking industry and concentrate on high value finance. Read the full report.

A comment from International Advisor.

2nd Nov 2009

Guernsey's Chief Minister only read the good bits  from the Foot report when he addressed the Guernsey States this morning (Thurs 29th Oct09). The Foot report endorses what the Landsbanki Guernsey depositors have been telling the States of Guernsey ever since the Depositors Compensation scheme was introduced. Totally inadequate. Misleads depositors

Now perhaps the States should start taking the report submitted to them below 17th Oct 09, more seriously concerning the GFSC

2nd Nov 2009


Guernsey's been ranked 13th in a list of the world's most secretive financial jurisdictions. The Tax Justice Network has published its 2009 results and while Guernsey falls just outside their 'dirty dozen', it's still high in the list, more than 10 places above the Isle of Man. The findings seem to contradict other reviews of Guernsey's finance industry such as the OECD's report from earlier this year, which included the island on its 'white-list'. Jersey is two places above us. But the UK's City of London is streaks ahead according to the report. It's ranked 5th behind Luxembourg, Switzerland and the Cayman Islands. Top of the list though, is the US State of Delaware. Link to website

28th Oct 2009  Foot report released . Final report of the independent Review of the British offshore Financial Centres. Foot report
26th Oct 2009  Deloitte updateon a further payment in January 2010
28 Sept 2009 The Guernsey Press, " GIVE OFFSHORE BANKS A WIDE BERTH"
26th Sept 2009 Guernsey's Chief minister, Open letter to the Guernsey Press is old rhetoric and fails to address the new evidence against the GFSC. See letters and comments along with articles from " The Times", & " Guernsey Press",
9th Sept 2009 Landsbanki depositors to take legal action against Iceland
6th Sept 2009 FinancialHurricanes shake the tax havens, by Nick Mathaison, The Guardian, read a Landsbanki Depositors response.
4th sept 2009 Icelands Customers still out in the cold, a look at why Landsbanki savers in Guernsey feel thay have been short changed. Telegraphe online.



This website may not be particularly good publicity for Guernsey, but, what is written in it is undeniable fact and those facts will continue to be stated until all the Landsbanki Guernsey depositors have received back 100% of their savings, from what was a Bank regulated in Guernsey by the Guernsey Financial Serrvices Commission (GFSC).



Around 80 Depositors attended a meeting last night at the indoor cricket centre. Whilst the mood was upbeat because of the August payment of 25% of their deposits, they were disapointed that once again the Chief minister failed to expand on anything in the Policy Council's latest release which followed the normal trend of "none information". It is hoped that on his return from holiday he will address the visit in more depth.

Policy Council statement


Guernsey's  Chief

Minister, Lyndon Trott, who visited Iceland on the 6th,7th & 8th August 2009 in the company of his Chief executive and Proffessor Sutton, has had meetings with the Icelandic Finance Minister amongst others.  The sole intention of the visit was to improve the situation of the 1600 Landsbanki Guernsey depositors who lost millions of pounds when Landsbanki Guernsey, a Guernsey bank , regulated by the Guernsey Financial  Commission  was put into administration on the 6th October 2008. 

It is now November 2009 and the Chief minister has still failed to update depositors on his visit. It is his very poor public relations that tends to aggravate the whole situation.

Landsbanki Guernsey

Depositors can only expect to recover between 85% and 90% of their deposits without Guernsey Government intervention

5th August 2009

Today Landsbanki Guernsey depositors have received information that they will receive a further 25% repayment of their deposits. This now brings the total repaid to 55%, leaving 45% still outstanding. They have issued a press statement.

Landsbanki Depositors continue fight.

Depositing Money in Guernsey, can seriously damage your wealth,

Ask any Landsbanki Guernsey Depositor

This is a new site

This is a new site and is still being constructed. It will expand over the coming weeks to cover the Landsbanki Guernsey Situation and keep relevent news on the front page. The links to "READ MORE" etc. will start working as the site expands. It will be here to criticise Government and regulatory authorities where that is necessary and its aim is to always print accurate facts on the current situation.

It is not connected to the main LGDAG site which should still be the first stop for all Landsbanki Guernsey Depositors, and where information and discussions cover every aspect of our problem.

Chief Minister's photo usurps LGDAG Press release

The Guernsey Depositors Compensation Scheme


The official Landsbanki Guernsey Depositors  Action Group website

OECD, what's on


Guernsey Policy Council Statement on Iceland visit by Chief Minister

Deloitte updates for depositors


Site Administrators blog





A lot more will be said about this in the near future. Suffice to say it is totally insufficient and would not cover the headline figure of £50,000 of your savings, should another bank go down. 


The scheme is operated  by an independent Board which is seperate from both the Guernsey Financial services Commission and The states of Guernsey. They have a new website  at 



    Quick Links



  to visit Iceland

      as pressure mounts from

     frustrated depositors

                                31 July 2009

During question time in the Guernsey States he informed members that he would be visiting Iceland next week along with other senior officials and he will be meeting representitives of the Icelandic Government.

Depositors hope that his performance will be better than it has been over the past ten months where no updates have been received from the Guernsey government and the Chief Minister has reneged on promises he made publicly on Radio Guernsey in February. This latest move appears to come as there is mounting pressure from depositors as to exactly what  he has been doing when he states that"he has been working tirelessly behind the scenes."

The depositors action group, The LGDAG have said that they would like Deputy DeLisle to accompany the Chief Minister on this trip as at present they have little faith in the Chief Ministerdelivering an honest assessment of what the trip achieves. Deputy DeLisle has offered his services and the LGDAG  encourage the Policy Council to take him up on it.



Government fails

to address the

Landsbanki  Guernsey



                                        16th July 2009

It is now 10 months since Landsbanki Guernsey went into administration on the 6th of October 2008, in the Channel Island of Guernsey.It was a Guernsey regulated bank under the Guernsey Financial services Commission and depositors felt sure that they had deposited their savings in a well regulated safe environment. Guernsey's Chief Minister is still failing to address the problem of ensuring that all depositors get 100% of their money back. The 1600 depositors are still owed around £80 million and so far have only recovered 30% of their savings.

The depositors action group have once again written to all the politicians (Deputies) on the island to see if they can get a straight answer from the Chief Minister, Lyndon Trott

Letter to all Deputies 25/26 July 2009

Reply from Chief Minister 30th July 2009

Response to reply to Deputies and Policy Council 1st Aug 2009


An open letter from Chief Minister Lyndon Trott & the LGDAG response


3rd August 2009

In response to a letter delivered to the Policy Council by the Landsbanki Guernsey depositors Action Group, Chief Minister Lyndon Trott has issued an open letter to the Landsbanki Depositors and the People of Guernsey. the full contents of his letter can be seen by following the link below. The response by the LGDAG can also be seen by following the second link


CM open letter


LGDAG response


Trott refuses to continue with question time after speech from staged question.


 Deputy DeLisle

 refused permission to

 accompany Iceland


   Saturday 30th July 2009


Deputy DeLisle, who had offered his services to the Chief Minister of Guernsey, to accompany a delegation visiting Iceland to speak to Icelandic Government representitives has been refused by the Chief Minister. Deputy DeLisle had offered to travel at his own expense and had been encouraged by the Landsbanki Guernsey Depositors to attend, as they had little faith in the Chief Minister to report back honestly on the results of the vist.

The visit had been kept secret from Deputies of the States of Guernsey who only learned of it at the States meeting on the 29th July 2009. They have still not been told exactly when the visit will take place, why it is happening and who will be attending. The Chief minister says. " Its Confidential".


  • The Bank that sank


A very worthy site, with interviews with depositors and a game show where Landsbank Depositors can't win.


See the new cartoon by following the link below



Read More



Guernsey, the only Government in the Western World to totally fail its Depositors.



Guernsey still remains the only Government in the western world who have totally failed to assist their depositors in any way whatsoever.


In the States, on the 29th June 2009 Guernsey's Chief  Minister Lyndon Trott refused to answer more questions on the Landsbanki Guernsey Fiasco, after reading two prepared answers to questions put to him by Deputy David De L'Isle and a supplemental by Deputy Graham Guille appeared to be staged to allow the Chief Minister to give a speech. When another question was asked by Deputy Barry Brehaut, the Bailiff Sir Geoffrey Rowland intervened and suggested an answer as to how he felt the Chief Minister had meant a previous statement. The Chief Minister commented to the effect that the Bailiff's summing up had been correct.


The full Question and answer can be heard by downloading it from sendspace on the following link. A transcript can be read by clicking transcript below.


click to see full Transcript

 Quote from


15th August 2009


“But among the worst affected by the crisis are 10,000 savers with £840m tied up in Kaupthing in the Isle of Man and 2,000 savers with £117m in Landsbanki in Guernsey. All lost their entire savings with no compensation. Many are still waiting in line with a queue of commercial creditors. “









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The Landsbanki Guernsey Fiasco