Landsbanki: Depositors dealt a blow in Iceland

Depositors with the failed Guernsey bank Landsbanki have suffered a setback to their campaign to get their money back.

The bank went into administration in 2008 following the collapse of its parent in Iceland.

Some of the Guernsey depositors' cash had been sent to the parent bank and efforts are underway to recover it. The depositors claim to be recognised as individual creditors has been rejected but the outcome of their group claim is still to be determined.
Landsbanki Iceland is also refusing to recognise the guarantee it offered for savings with Landsbanki Guernsey.