Fri, 24 May 2013
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Crash of the Icebergs
The financial muscle of the local authorities has enabled them to afford very expensive legal representation whereas ordinary depositors in Landsbanki Guernsey, where the sums of money involved are tiny in comparison to those claimed by the LAs, have not been entitled to the same representation. So their claims remain ranked as ordinary creditors and the takings commensurately reduced following the success of the LAs action. If one group of people placing a deposit in a bank are given preferential treatment from another merely because that first group have the financial clout to enforce preferred treatment then it is indeed a very sad day for justice. Of course the lawyers in this case will only be representing their clients but surely they should also be pursuing a truth that all depositors who placed money in these Icelandic banks should receive equal treatment. It is not clear to me why the LAs should have preferential treatment, other then that it was not fair for Icelandic depositors to receive preferential treatment over foreign depositors. It is sad that truth and fairness should not be apparent to all interested parties and not require expensive legal actions. Sorry for being naive! Meanwhile I concur that Guernsey's authorities have lacked the moral courage to fight on behalf of Depositors who have been treated more as shareholders in a bankrupt company. A review of the Guernsey Financial Services Commission paid for by the States of Guernsey (which also funds the commission) found no wrongdoing despite the fact that the Parental Guarantee of Landsbanki hf of its Guernsey Subsidiaries deposits was never actually signed and accordingly Landsbanki hf are exempt from this proposed support. Would you put your money into a jurisdiction where there is such a moral vacuum?
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