Many Landsbanki savers still facing massive losses

Over 2,000 mostly British savers are staring financial disaster in the face as they fail to benefit from the Government’s Landsbanki rescue package, says the Landsbanki Depositers Action Group.

As hundreds of thousands of UK Icesave customers heave a huge sigh of relief following the Financial Services Compensation Scheme’s announcement that they will get all their money back, there are still thousands of Guernsey-based savers who are facing financial catastrophe.

“We are absolutely devastated and feel completely let down by the Government,” said, Daniel Herzberg of the Landsbanki Depositors Action Group.

“Hundreds of very distressed pensioners and expats with money in the Landsbanki Guernsey subsidiary have contacted us since we launched our action group earlier this month.

“Some risk losing almost their entire life savings unless the Government takes action to ensure they receive the same help as that given to onshore savers.

“Despite years of paying UK tax and NI contributions, holding a British passport and being a British citizen, they have been deserted by the UK Government just when they are most in need of help.

Savers in Landsbanki Guernsey are not the fat cats of this world but are, for the most part, prudent pensioners and hard working people who have managed to save over the years in order to provide for their retirement. They include teachers, nurses, doctors and retired military personnel.

“The latest news headlines on this issue will give the impression that the crisis is over and that the Government has charged to the rescue, but nothing has changed for the Guernsey-based savers who were taken in by the parent bank’s guarantee to honour its Guernsey subsidiary’s liabilities.

“The distress that this is causing retired people who were relying on their savings to live a normal life is intolerable. Some are literally distraught with worry. We need action now.”