Disgruntled depositors rule out protest
Monday 19th January 2009, 1:00PM GMT.
MEMBERS of the Landsbanki Guernsey Depositors Action Group will not be mounting any organised demonstrations for now, despite requests to do so from a number of depositors both in the Bailiwick and further afield.
This follows the States’ refusal to provide any form of assistance to people affected by the bank’s crash.
A number of depositors wanted to carry out a demonstration to show the anger and upset this has caused, the group said today.
A spokesman said it could not prevent individual depositors from making their own protests, either individually or collectively, but it believed the best way forward was to remain rational and calm, and continue to press the legitimacy of its case for help from the States and the UK Government.
‘The Isle of Man Government has put up £150m. towards assisting savers who were affected by the similar situation of Kaupthing Isle of Man as it recognises the damage the collapse has done to the reputation of the Crown Dependencies,’ said the spokesman for the group.
‘Guernsey, on the other hand, has clearly stated that it has no intention of helping savers. The contrast is stark and completely incongruous with the actions of all other jurisdictions affected by such bank failures within their territory.’
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Why am I forced to insure my car but banks arent enforced to ensure their customers savings?
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In the good old days banks kept a certain amount of cash to cover demand by depositors. It was a fairly conservative figure and generally worked quite well.
More recently banks etc have used a form of insurance called credit default swops. The abuse (lack of regulation)of these has caused what George Soros forecast early in 2008. It is Googling “George Soros credit default swops” Scary reading.
There was an example of a company who took on (were paid) the insurance of a finance house, the amount covered by the default swops was about £3 billion. The actual amount of cash the “insurer” put by in case it was needed was about £4 million. No regulation,no record of where the swaps were held. Just barmy.
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Huh!?
.. Guernsey refuses to provide any form of assistance to people affected by the Landsbanki Branch on Guernsey crash.
Disgusting!
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Why should my taxes go to support people that made a risky investment?
Is anyone going to compensate me if my business fails?
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Marmalade You miss the whole point. Guernsey is not expected to pay, BUT the government is expected to HELP the administrators recover the money lost in a BANK. The Government has allowed this bank into the island and furthermore was supposed to regulate it!!
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Rational and calm?! For how long. I will not be holding my breath that this course of ‘action’ will get the LGDAG any further. There are those who want a more open and forceful approach now, therefore the position seems to be that there is now division in the ranks of the depositors. Women did not get the vote by being calm and rational!!
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JP
How exactly is the “the government…expected to HELP the administrators recover the money lost in a BANK”
It can, and does make representations, but LG is still in adminisration. The onus of recovery is on the Asministrators. That is what you are paying them for.
If you feel the regulation has not been what it ought to have been, and here I have a deal of sympathy with you, then your must pursue the GFSC.
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“How exactly is the “the government…expected to HELP the administrators recover the money lost in a BANK””
a) By actually putting some genuine effort into demanding that the UK fulfills its constitutional duty to represent and protect Guernsey in international negotiations, and forces Iceland to fulfill the parental guarantee to Landsbanki Guernsey customers, just as it did with Icesave.
b) By demanding that the UK extends the Landsbanki Freezing Order by the section of the anti-terrorism act which protects against threats to the property of all British citizens anywhere, rather than just the part which only protects against threats to the UK (mainland) economy, as the order is framed currently.
c) By underwriting a commercial loan of £25m, against LG’s £101m of nominal assets, to implement the administrators phantom depositor compensation scheme proposal to the States, in order to accelerate payment to smaller depositors.
Cost to us the taxpayer: zero in all cases, other than some time and effort by the bureaucraps and maybe a return flight or two to Gatwick.
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