GUERNSEY was coming un-der mounting pressure yesterday to bail out Landsbanki customers after the Isle of Man announced that it was using £150 million of taxpayer’s money to pay back depositors there.

The Isle of Man move further isolates Guernsey, which still does not have a depositor protection scheme.
The Isle of Man has pledged to give all the savers of a collapsed bank in the jurisdiction up to £50,000 each. As things currently stand, Jersey is only guaranteeing the deposits held by locally resident savers.
The Isle of Man’s announcement will therefore force Jersey to think hard about who it includes if a depositor protection scheme is introduced here. A review panel is currently considering how to protect the savings of non-resident savers.

However, the more pressing question for Jersey’s political and finance industry leaders is now whether the Island’s reputation will suffer as a result of Guernsey’s refusal to use public money to help Landsbanki Guernsey depositors.

In the Isle of Man, it was the Iceland bank Kaupthing Singer and Friedlander which collapsed. The Isle of Man Chief Minister, Tony Brown, said: ‘The Isle of Man government is prepared to commit public money to play its part in helping depositors in partnership with the island’s banking sector.’