UK TREASURY CONFIRM THEY WILL REPRESENT GUERNSEY & IOM

  • Emabroad
  • 10/10/08 30/08/09
  • a depositor
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Posted: Wed, 15/10/2008 - 15:07

Just received this in response to my email to the Guernsey Treasury re: my Landsbanki Account, but it also refers to KFS IOM.

MEDIA STATEMENT – WEDNESDAY 15 OCTOBER 2008
FOR IMMEDIATE RELEASE
THE UK Treasury will support the States in representations with the Icelandic Government
over Landsbanki Guernsey.
The development, which was confirmed today, follows a meeting on Monday with Treasury
officials in London.
The Treasury is also to represent the Isle of Man in negotiations with the Icelandic authorities
over the collapse of Kaupthing Singer Friedlander, another Icelandic bank which went into
voluntary liquidation last Friday.
‘This is a valued development and supports some of the many actions we have been taking on
this issue,’ said Treasury and Resources Minister Deputy Charles Parkinson.
‘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.
‘I have been particularly grateful for the way the Guernsey Financial Services Commission has
responded and the way staff have handled a delicate and constantly-changing situation.’
The GFSC has also written to the controllers of Landsbanki Guernsey’s parent bank – the
Icelandic regulators – pressing for parental commitments to meet the Guernsey bank’s
liabilities, including depositor liabilities, to be honoured.
States Chief Executive Mike Brown and Peter Neville, Director General of the GFSC,
attended the meeting with the Treasury alongside representatives of the States of Jersey and
financial regulators from Jersey and the Isle of Man.
The meeting was arranged to discuss general financial stability issues surrounding the global
financial crisis, though the situation regarding Landsbanki Guernsey was raised.
Mr Brown said that that the Treasury was confident in its rescue package. It was evident that
the measures taken in Britain, and across the world in the jurisdictions of many ‘parent’ banks
of Guernsey branches and subsidiaries, would help to secure the futures of those banks.
Page 2
The multi-billion pound rescue plan for British banks was intended to inject stability into the
banking sector.
A consequence of this will be to provide sound head office backing for local subsidiaries and
branches.
A key element of the package is that the banks will be free to operate commercially, and are
expected to do so. The UK Government has made clear that it does not intend to interfere with
those day-to-day commercial operations.
It was recognised at the meeting that the island-based branches and subsidiaries of the UK
banks concerned were making a very substantial contribution to the parent bank’s liquidity
through ‘upstreaming’. This benefits the UK banking system and, by extension, the UK
Government.
Mr Brown added that similar support from other countries to their banking systems should
benefit the remaining institutions in the island with non-UK parents.
While it is clear that the UK Depositor Protection Scheme does not cover depositors in
Guernsey institutions, the meeting also provided an opportunity to brief Treasury officials on
Guernsey’s intention to introduce a scheme in November.
Deputy Parkinson, who is heading the technical group in Guernsey progressing the plans for
such a scheme, 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.’
Contact will be maintained by the States and the Guernsey Financial Services Commission
with the relevant UK authorities and the banks on all issues relating to the financial crisis, and
longer-term stability issues.
ends

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Interesting but - SO??

  • Julienne
  • 16/10/08 31/08/09
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  • Tue, 18/08/2009 - 15:52

This was an extremely interesting and encouraging statement in October last year --- what has happened since then--- seemingly nothing -

Can anyone tell me otherwise.............


Very interesting but any development or progress

  • glen07
  • 21/10/08 n/a (free)
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  • Sun, 16/08/2009 - 08:22

What has been done to pursue the parental commitments since the media statement on 15th October, 2008?


UK TREASURY CONFIRM REPRESENTATION

  • IceCrusher
  • 14/10/08 25/10/11
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  • Wed, 15/10/2008 - 17:12

This sounds extremely positive, especially the justification used for the existence of island-based branches benefiting the UK banking system and by extension the UK government. With wording like this deeds may follow...


The wording could be

  • occams razor
  • 10/10/08 31/05/09
  • a depositor
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  • Wed, 15/10/2008 - 17:22

The wording could be interpreted as positive.
But I don't think this is any surprise or news, except that it is now publicly confirmed.
The UK Govt is constitutionally responsible for the international affairs of the IOM, therefore it's a given that they would represent IOMs interests in Iceland.
How well they are doing it... well that's another question


UK TREASURY CONFIRM THEY WILL REPRESENT GUERNSEY & IOM

  • mikeinfrance
  • 12/10/08 28/09/09
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  • Wed, 15/10/2008 - 17:56

Surely this is not technically correct:
"Kaupthing Singer Friedlander, another Icelandic bank which went into
voluntary liquidation last Friday."
It's my understanding that KSFIOM had its banking licence withdrawn and is not currently in liquidation?

Has anyone seen a similar statement from the UK Treasury confirming this press release and the press release issued by IOM today??
When are these negotiations to take place or are they happening now?


Are politicians technically

  • IceCrusher
  • 14/10/08 25/10/11
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  • Wed, 15/10/2008 - 18:17

Are politicians technically correct or do they construct tales for public consumption? Not everyone is looking at these statements with the same eye for detail that we might. If the story enables them to back- pedal a little from the entrenched position of just a couple of days ago - and it suits our purpose - then perhaps we can allow this face-saver? Reciprocation may be required to achieve our ultimate aim.


Your point is correct I

  • occams razor
  • 10/10/08 31/05/09
  • a depositor
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  • Wed, 15/10/2008 - 18:00

Your point is correct I believe.