Darling and King face a Landsbanki grilling
Tuesday 28th October 2008, 1:00PM GMT.
CHANCELLOR Alistair Darling and governor of the Bank of England Mervyn King (pictured) look set to be grilled about the Landsbanki Guernsey collapse at an independent inquiry.
The UK Treasury Committee investigation into the banking crisis is almost certain to cover the issue.
An orchestrated campaign by those with savings in the bank and another by those with money in Kaupthing Singer & Friedlander in the Isle of Man has seen the committee inundated with questions to ask and it is now sifting through the correspondence.
Questions can be sent in up to 48 hours before the hearing sits on Monday and Financial Services Authority chairman Lord Turner of Ecchinswell will be the third witness.
A Treasury Committee spokesman said Landsbanki Guernsey was ‘likely to come up’ after its chairman, MP John McFall, said on Channel 4 News that the Isle of Man would form part of the inquiry.
Talking about the status of the islands in relation to the UK, Mr McFall said that it was an issue the committee had been considering.
‘That’s why we visited the Isle of Man and Jersey and hope to visit Guernsey at a later date,’ he said.
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It is nice to see that someboy is about to get a grilling. It is about time the GFSC received a cremation. Consortium members keep building the pressure. It is also worth noting that the UK authorities are taking such a keen interest in our affairs. This whole thing stinks of a hostile takeover. Long overdue in my opinion.
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we are british passport holders living in france. since nonresident in the uk our british banks advised transfers to jersey and guernsey. we have been let down badly by first, equitable life in jersey an secondly, landbanki in guernsey .ourselves, all our friends and aquaintances who have banking in the channel islands have now or are in the process of moving from the ch island to a more secure country. there is a rumour in france that the french fisc have accessed the bank systems there anyway. whether you have declared your accounts or pay the undisclosed tax, coupled to no insurance on bank deposits means there is no reason to stay. good -by
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Many thanks for the coverage you have given to the plight of LG depositors. Pleasew keep covering this subject as we need any ray of sunshine in these gloomhy frighgtening days.
What we need is for someone, i.e. UK, Guernsey or Icelandic governments to acept responsibility for their part in this shambles and to sand up like men and be counted – still wont hold my breath
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The Labour Government have received plaudits for their “No UK saver will lose money” stance.
Blox!
The Labour Government have washed their hands of 2000 UK citizens who, through no fault of their own, couldn’t open accounts with UK banks.
An inquiry into this matter would uncover machinations at the highest level! Heads should roll!
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Alistair Darling is featured on our site on the Landsbanki Guernsey subject: http://landsbankiguernseysavers.co.uk/AlistairDarling.html
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It is extremely sad to see accountability that is demanded in the UK does not seem to makes its way onto Guernsey’s fair shores. Guernsey Finance leaders needs to shape up in this increasingly competitive World or we’ll be due a dismal future
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Interesting comments to this article – one seems to admit to being a tax dodger, while two seem to think that the UK is at fault for not bailing out UK savers.
How does this work, please?
The UK government has shown its intentions to underwrite deposits of UK banks. To extend this to Lands Guernsey would require either that Guernsey is effectively part of the UK, or that the government in effect guarantees the savings of all UK depositors wherever they may be in the globe.
What will be interesting to see is what measures the Channel Islands goverments introduce to avoid the flight of funds to safer shores.
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Agree. There are some interesting posts.. Doubt whether anyone really cares about the odd tax dodger..
But..
Do not paint everyone with the same brush.. In order to get a clear picture of the devastatio caused to indic\viduals like you and me, try reading some of the horror stories which have now been posted online elswhere….
Many honest people who simply trusted that Landsbanki Guernsey was properly supervised and regulated lost from a few thousand quid .. to everything.
Who would not see the wisdom in at least supporting the efforts of those honest ex-pat folk to seek compensation and or return of their funds…
After all, did they not clearly select Guernsey as the best location for depositing their savings.. and did not this trust come about largely as a result of the fact that Guernsey was touted as one of, (if not the most) safe tax free duristictions in which to deposit funds for ex-pat UK citizens while working overseas?
Aside from the LG depositors, Guernsey itself is now in dire need of a miracle.. For a reputation for financial security in the banking world is far more easily lost than maintained.
In light of the continued poor response of the Guernsey FSC and related government authorities to the needs of the investors who clearly lost out through no real fault of their own it is only too clear that Guernsey can clearly no longer offer me nor many others the level of financial security I require in order to trust my savings to a duristiction while working overseas..
As a result. I will take my business elsewhere and have no doubt that many, many others shall do the same.
…Even Cayman might be a better choice.. But I think I`ll just pop ove rto the IOM instead.. At least they know how to respond to the needs of depositors who require protection and /or compensation.
Bye Guernsey.. With regards to being a place to which people will transfer their savings.. Your days are most certainly numbered.
Note: For those of you hanging around these comment postings to simply act like petty referees.. Suggest you remember that people are suffering and that this situation is far from funny.
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What was the outcome of the “grilling”?
More… silence?
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Steve th e Ex Pat asks “More silence?”
The article says next Monday. The Uk Treasury Committee web site details:
Forthcoming Treasury Committee meetings
BANKING CRISIS
4pm, Monday 3rd November, Grimond Room, Portcullis House
Witnesses: Rt Hon Alistair Darling MP, Chancellor of the Exchequer, Mervyn King, Governor of the Bank of England, and Lord Turner of Ecchinswell, Chairman of the Financial Services Authority.
Probably explains the silence as to the outcome.
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The response will be – you pay 20% the UK pays more, we might underwrite 15% for you, so if you get 30p in the pound we will chip in 15 pence up to say £25,000.
Only a guess, however Alistair Darling is well known for his linguistic gymnastics and he will be able to dodge any question that comes his way; I’m afraid you won’t get assurance at that meeting. They will committ to nothing, which, to be fair, should be expected. Why do they need to provide guarantees.
Where will Lyndon be I wonder?
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To:
Stephen John, (per the info. you kindly provided above)…
Many thanks. I, (like many others in a similarly distressed situation) shall eagerly await a positive response from the UK Treasury.
To: Darren, (per your comment above) – Well. There is afterall, always hope.
Enjoy your Sunday.
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Being a British National residing and working overseas I was unable to open a bank account back in Blighty. So I turned to the Channel Islands and opened an account. Like so many others I would have preferred, if I had been able to, bank back at home. We are not all tax dodgers and multimillionaires.
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One depositor I’m aware of is a local girl, 25 years old who got a small inheritance from her grandmother’s legacy. £4500. Saw the big ad in the paper and put it there for her daughter’s education.
Tax dodger? I don’t think so. Could easily ahve been a daughter of yours.
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“Bye Guernsey.. With regards to being a place to which people will transfer their savings.. Your days are most certainly numbered.”
Yeah. See ya. You’re just looking for a scapegoat, someone to blame. trying to get your funds out of the Guernsey taxpayer. Simply isn’t going to happen.
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What I am unable to understand is why depositors were not concerned about all the ‘bad press’ regarding Icelandic banks, that preceded this event. There are alternatives but they were not offering such good interest rates. I remember the big queue to retrieve money from Northern Rock Guernsey before the UK govt took them over. Why was there not a similar run on Landsbanki when the daily papers were questioning the strength of the Icelandic Banks?
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Please take a look at this Lindon Trott, Brown, Darling, Icelandic Prime Minister.
This was posted on money supermarket
I spoke to this guy (John his real) name last night. This chap is on the edge and a swear he is considering YOU KNOW WHAT.
Is it going to take something like this before you MPs sit up and takes notice.
As Follows
“Please post this for me: I remember well standing in the square in the centre of Prague on the site where a student so concerned by his lack of voice burnt himself to death; 1968 I think; It made the world sit up and take notice! Whilst our plight is not so serious I think the Guernseys deputies are treating this crisis as a minor issue: I have lost most of my money; my beloved dogs have died in the last two years and I can only walk with difficulty as my joints have given up in my lower limbs; I am prepared to sacfricife myself for the good of others in order that we may get some justice and that Guernsey never again can suck in honest savers like me”
He has given me permission to circulate his message to you all, and to the media and various officials as we see fit. We are looking into how best to do this, but first of all I wanted you to all to read it. We, more than anyone else in the world, can sympathise with him, and understand the pain he is going through.
Despite his health problems, he was prepared and willing to travel to Guernsey for the TV programme tomorrow. He puts most of us, me definitely included, to shame. Thank you XXX for setting such a brilliant example. You inspire us all to go on fighting!
JOHN HAS WORKRD HARD ALL HIS LIFE AND NOW LIVES ON HIS OWN IN FRANCE. HE PUT HIS MONEY OFF SHORE IN GUERNSEY, AS BEING AN EX PAT HE WAS NOT ALLOWED TO HOLD A UK BANK ACCOUNT.
HE PAID HIS TAXES IN THE UK AND LOOK HOW THE UK GOVERNMENT ARE NOW TREATING HIM NOW.
If any UK Press pick up this article and want anymore comments please contact The Jersey Evening post for my number.
Peter.
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