Anger and desperation – but a glimmer of hope
Friday 10th October 2008, 2:30PM BST.
THE sheer scale of the potential personal disaster facing Landsbanki savers started to emerge yesterday. Customers of the bank’s local subsidiary, who do not know if their entire life savings have been lost after it went into administration this week, contacted the Guernsey Press to tell of their fears for the future of their families.
Some said they were even contemplating suicide. But Chief Minister Lyndon Trott last night offered them some hope:
‘Depositors in Landsbanki Guernsey have not lost all their savings. I anticipate that there will be substantial recoveries from the bank, which will be passed on to customers,’ he said.
And a statement from administrator Rick Garrard of Deloitte & Touche LLP was issued which offered further hope.
‘The Bank had taken measures to diversify its exposure to its parent company in the six months preceding my appointment,’ he said. ‘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.
‘There are significant liquid funds available to the Bank and we are doing everything we can within the boundaries of the law to enable a part payment to depositors and creditors to be made as soon as possible.’
Most, unaware of the statements from Deputy Trott and Mr Garrard, said they were not millionaires looking to store their money offshore but had worked for decades and diligently saved to provide a nest egg for themselves and their families in later life.
Former businessman Janson Bewey (pictured) summed up the feelings of many depositors when he said he felt ‘like a wounded animal – ferocious’. The 57-year-old part-time lecturer at the College of Further Education had £95,000 in Landsbanki Guernsey.
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The general picture promoted by Landsbanki and those politicans and finance gurus who have commented, is that world issues overtook the Bank and the collapse could not have been foreseen.
Are we to believe, then, that staff and senior management also fell foul of of this swift and instant downfall, and that they too have personal funds frozen within Landsbank’s currently impenetrable walls?
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Well Vic, I think the media have rumbled them if articles in the Telegraph yesterday and Taxpayers Alliance disclosures are anything to go by.
If deposits in Landsbani Guernsey are anyhing like the estimates of anbout £250 million then they must have shifted out a fair sum to Heritable for the businbess to go into administration.
In February, Moody’s Investors Service cut its ratings on all the major Icelandic banks. Landsbanki’s long-term rating was downgraded “in light of the weaker credit environment”.
And in May, Fitch, another agency, cut the ratings of Glitnir Bank and Kaupthing Bank.
Standard & Poor’s said it had only rated one Icelandic bank, Glitnir, and had cut its rating from A- to BBB+ in April.
Martin Winn, a spokesman for the agency, said: “We have been highlighting a growing risk about the Icelandic banking system since February 2007. The rating BBB+ is very high risk for a Western European bank.” (Daily Telegraph of yesterday)
It does seem Mr Gamble that so many invested in the bank without eventhe basic research, and in a jurisdiction that they should have known has no protection for depositors.
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Disapointed, depressed, disgusted, angry! Too right I am!
But more importantly I am now “out of pocket”!
Like many others, (as an ex-pat saver living in a foreign land)I am now forced to watch from the side lines, unable to withdraw my hard earned savings which are locked up in a Landsbanki Guernsey “EASY ACCESS” account.
My financial security and that of my family have been put in jeapordy as a direct result of the sudden demise of the Landsbanki Guernsey bank. From what I read, there is little hope that all my savings will ever be recovered.
Ironically, I chose this bank and also Guernsey based upon information readily available to me at the time… Advertisements and articles all promoted the security and excellence of both Guernsey and the Landsbanki Guernsey operation..
However, recent happenings clearly indicate that what I read was simply “BLARNEY”.
.. Judging by the lack of action on the part of the Guernsey & UK governments to assist individuals recover their losses, it appears that they care little for the security of an individual depositors savings which are deposited in the duristiction.
Investing some of my savings in an offshore bank operating on Guernsey soil while working overseas was a BIG mistake.
AND .. as for my confidence in Guernsey as place to deposit savings in the future?
Ha Ha Ha!!- Guernsey!! You have lost 100% of my confidence. Infact, I would not encourage anyone to invest in ANY institution operating on your soil.. In my oppinion, the following message should now pop up in everyones mind when the name Guernsey is raised -
** “Ex-Pat DEPOSITORS beware!” **
As for the future. I choose the IOM!
At least the government of the IOM is working hard to compensate and support the recovery of funds lost due to the demise of a bank on their soil.
GOOD BYE GUERNSEY!
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