THE UK has lent its weight to local attempts to get Landsbanki Guernsey customers’ money back.
It was confirmed yesterday that UK Treasury officials would support the States in its dealings with the Icelandic government, despite some MPs condemning the Crown Dependencies.
And as Liberal Democrat deputy leader Vince Cable continues his campaign against offshore subsidiaries, the UK Treasury has recognised that the UK Government does benefit from them.
Treasury and Resources minister Charles Parkinson (pictured) said that the UK backing was a valued development and supported some of the many actions the States had taken.
‘We have been accused of failing to act appropriately to this crisis but nothing could be further from the truth. An awful lot of work has been going on behind the scenes,’ said Deputy Parkinson.
He also praised the efforts of the Guernsey Financial Services Commission.
The GFSC has written to the Icelandic regulator pressing for it to honour parental commitments to meet Landsbanki Guernsey liabilities, including depositor liabilities.
States chief executive Mike Brown and GFSC director general Peter Neville attended a meeting with the Treasury alongside representatives of the States of Jersey and financial regulators from Jersey and the Isle of Man.
It had been arranged to discuss general financial stability issues surrounding the global crisis, although the Landsbanki Guernsey situation was raised.
It was recognised at the meeting that the island-based branches and subsidiaries of UK banks were making a very substantial contribution to the parent banks’ liquidity through ‘upstreaming’.
This benefits the UK banking system and, by extension, the government – although the GFSC has warned about the dangers to the local operations associated with the practice.
Landsbanki Guernsey customers remain unclear as to how much of their savings they will recover after the bank was put into administration – there is no depositor-protection scheme in place locally.
And the UK scheme does not cover money in Guernsey institutions.
Work is under way to introduce a local scheme next month, but it will not be retrospective.
Deputy Parkinson, who is heading the technical group in Guernsey progressing the plans, said: ‘I am pleased that work on our proposals is progressing quickly and look forward to meeting again next week with the representatives of the banking sector to continue our work in designing the new system.’
Article posted on 16th October, 2008 - 2.30pm
2 Article Comments
A little late.. but good news nevertheless.
Hummm – 30p in the pound… Better than nothing. Had been expecting at least 75p in the pound though!!
And Notably!! Far less than that which would have been received in compensation should this failure have occurred in IOM or another counry within Europe.
Guernsey & UK Government – Have Heritable UKrepay Landsbanki Guernsey the approx. 36, 000, 000 of Landsbanki Guernsey deposits currently frozen in the UK by the treasury and keep the pressure on the Landsbanki Bank, (read Icelandic governement) in Iceland so as to ensure complete and prompt repayment of all monies owed to depositors.
Please “Get our money back!!”
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How can the uk or worldwide goverments take guernsey seriusly when our politicians that have control of our island can be an unemployed fisherman one year and the leader of the house the next no-one in our goverment is experienced in the job do but they are paid £40.000 a year to do it.
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