Reminder letter sent to Guernsey's Chief Minister on 2nd November 2009 after his failure to
respond to a report submitted to him around 17th October 2009. There has not been a response
to this letter to date 28th November 2009.
2nd November 2009
Mr Lyndon Trott, Chief Minister,
Sir Charles Frossard House,
St Peter Port,
Guernsey, GY1 1FH.
Dear Mr Trott,
Reference my letter of last month circulated to you and all States Deputies requesting a full
independent public inquiry into the causes leading to the failure of Landsbanki Guernsey and lessons
learned by the regulator and others subsequently, I would appreciate a response regarding this issue
at the earliest possible opportunity.
Whilst the failure of Landsbanki Guernsey cannot wholly be placed on the actions of the GFSC, Her
Majesty’s Treasury officials have made it quite clear that the regulation of the banking sector in
Guernsey is wholly the responsibility of the Guernsey authorities and regulator. The Landsbanki
Guernsey Depositors Action Group (LGDAG) has identified a number of clear shortcomings in the
standard of regulation performed by the GFSC and have communicated these shortcomings directly
with the Director General of the GFSC, however to date no satisfactory reply has been forthcoming.
The continued ‘no comment’ stance from the GFSC does nothing more than highlight the ongoing
plight of Landsbanki savers to the detriment of Guernsey’ hard fought reputation as a well regulated
financial centre. The GFSC’s continued failure to face facts and show that lessons have been learned
continues to sow doubt in depositor’s minds when decisions are made as to where to save money.
This can do nothing but harm the overall economy of Guernsey at a time when robust policies are
needed to attract investment.
I would like to remind you of your words of 26th November 2008:“...there was no evidence to suggest
that there was any policy regulatory failure at all . . . however it would be foolish to say never until all of
the facts were completely understood by all parties”.
There is now clear evidence to indicate at the least severe regulator shortcomings, these should be
clarified, not only for the peace of mind of the savers of Landsbanki Guernsey, but also to reassure
current and potential depositors in the island’s banks.
I would therefore appreciate your earliest possible response to this matter and trust that in keeping
with your statement of November 2008 that this will be positive and will allow all to see that
Guernsey continues to lead by example in the financial services industry.
For and on behalf of the Landsbanki Guernsey Depositors Action Group