Landsbanki Guernsey Depositors Action Group

reject aspects of the GFSC 2009 Annual Report

30th August 2009

The LGDAG wrote to Mr Nik Van Leuvan, Director General of the Guernsey Financial Services Commission (GFSC)  on the 19th August 2010 and in that letter stated  that they could not let the GFSC's 2009 Annual Report go unchallenged and that challenge must go on record. Along with that letter they sent the apparent proof to back up that challenge.

In the Banking section of their 2009 report, under the Banking Division section on page 17, they had claimed, by quoting passages from the Promontory report, that the actions taken by the Commission in 2008 were directly beneficial to the interests of LGL's depositors. There is no doubt that some of their actions six months prior to the bank going into administration were of some benefit, but some of their actions were the reason why Landsbanki depositors are still owed 32.5% of their money, two years down the line. By classing Heritable Bank in the UK as a third party bank and allowing the upstreaming of £36 million of depositors money to it without being ring fenced meant that money disapeared in the administration pot for Heritable. Heritable could not be classed as a third party as it was sister to Landsbanki Islands hf in Iceland and relied on that bank for its credit line. In the LGDAG's opinion the GFSC got it badly wrong.

Mr Van Leuvan replied to the letter on the 26th August 2010 stating that, "the Commission's oft repeated position in this matter needs no rehearsal in this letter.

His full reply can be see  in the link to the right.


I would remind you of the statement made on the 9th October 2008

by the Administrator Rik Garrard.

“The Bank had taken measures to diversify its exposure to its parent company in the six months preceding my appointment. 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."


Links to various aspects of the article to the left.

19th August 2010

LGDAG letter to Mr Van Leuvan rejecting the GFSC 2009 Annual report

Accompanied by:

Report by Matthew Dorman on an Independent Public Inquiry

Copy of a letter to Mr Van leuvan dated 4th Aug 2009, with attached apparent proof of a lack of due diligence.

Basel Core Principals that were not addressed in the Promontory report

26th August 2010 A reply from Mr van leuvan to the LGDAG rejecting their criticism
4th Sept 2010

A response is required to Mr Van Leuvan's

reply of 26th August 2010


Seperate documents of relevence

January 2009 The Promontory Report, by Michael Foote
July 2010 GFSC 2009 Annual Report


Landsbanki Guernsey

Depositors can only expect to recover between 85% and 91% of their deposits

over a number of years

 without Guernsey Government intervention.

Its time for select committee

type inquiry.