At a press conference today, a group of almost 200 clients of Landsbanki Luxembourg in Spain and France raised complaints against the bank, because of its equity release lons and its administrator, Yvette Hamilius, for not investigating what went on in the bank prior to its default. A Brussel-based lawyer, Bernard Maingain, discussed the complaints, most of which Icelog has already written about earlier.
The action taken by the group is both aimed at the Landsbanki Luxembourg operations and the administrator. As Maingain pointed out today, the Landsbanki operations raise many questions – such as if the equity release loans were put together in such a way that they would never make the money promised, if they were mis-sold, if Landsbanki really had the license to operate in Spain and France. It is part of an administrator’s duty to investigate any possible irregularities prior to the failure of the company administrated.
Tomorrow, these claims will be presented in Luxembourg. This is just the beginning of a case, which no doubt will run for a while. The interesting thing is that here Luxembourg is being challenged on its supervision of its gigantic banking sector – the lifeblood of this tiny Duchy. But as representatives of the group said today, they are seeking nothing but justice from Luxembourg.
It will be interesting to see how easy it is to seek justice in a bank-related case in a country utterly and completely at the mercy of its banking sector.
*Here is a video link, in English but mostly in French, on the Landsbanki Luxembourg action, made last week during the press conference in Brussels, with interviews with some Landsbanki clients.
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