Icelandic Banks

Readers Corner

Icelandic Banks

Dear Eyglo,

I would just to follow up some other letters from people who saved in Icelandic Banks.

I moved from England to Malta to retire somewhere warm because of ill health.

One of the first things that happened was that I was told that I could no longer save in UK banks because I was no longer a resident.

So, I put my savings in Landsbanki Guernsey - which was formerly the Cheshire Building Society. The interest rate was not the highest but it had a long term savings account which I thought would leave me worry free for 5 years. Many residents of Guernsey saved there too. I am not a greedy investor - just an ordinary saver suffering from ill health - and also an ordinary tax payer.

Imagine the distress I and my fellow savers suffered when Landsbanki crashed!! Imagine how much worse this was when we discovered that no Governmental body anywhere had any interest in our predicament.

Now we see that UK, Dutch and Icelandic savers have all been bailed out by their governments - BUT NOT US!

Furthermore, we see that under Icelandic law, we ordinary savers who should surely be protected above risk taking investors, large institutions, and national governments are given the lowest possible priority, and therefore will likely receive nothing from the sale of Lansdbanki assets - unless a legal appeal is successful.

This whole situation seems to me and my fellow savers to be entirely immoral. Our perception is that we have been robbed!

Unfortunately, some of our savers have died since the crash, and they have done so as unhappy victims.

I do hope on behalf of we savers who remain that Iceland will do the decent thing and make sure that we ordinary savers are looked after first.

Best regards.

Charles Downing, Malta