Manx Herald Isle of Man

KSFIOM Scheme of Arrangement defunct before it starts

Fri, 24 Apr 2009 06:36:00 -0400

“This new information which we know has always formed the basis of the Treasury’s expectations shows that the cashflow and distribution proposals currently contained in the Scheme of Arrangement to be detrimental to depositors when compared with straight liquidation."

Jim

Sat, 25 Apr 2009 04:15:22 -0400

It is crazy that £550million of KSFIOM depositors' savings should have been placed in Kaupthing UK "for safe keeping" without being ring-fenced to assure that it was indeed 'safe'. It is equally crazy that other parties can subsequently lay legal claim to 50% of that money! That runs totally contrary to the depositors' human rights. It is not surprising that the European Court of Human Rights now has a backlog of 100,000 cases! That tells me that there is one hell of a lot of human rights abuse going on in Europe, & a lot of it involves banks as the biggest abusers!

As for Iceland, depositors were told that KSFIOM was in a consortium of 5 safe Nordic banks & that deposits were 'secured' by a parental guarantee from the parent Kaupthing bank in Iceland. Then suddenly 'ACRABADABRA! - Iceland conveniently says that the security of deposits in KSFIOM rest solely with the Bank! I learn 2 lessons from this: (1) never believe that you can trust an off-shore bank with your money,(2) never think for a moment that a financial supervision commission that is there to protect your money will be on your side should your bank let you down.

Jim

IceCrusher

Sat, 25 Apr 2009 10:28:35 -0400

Jim is absolutely right in his assessment above; the savers put their money in KSFIoM from where it was moved by that bank's directors to the UK under advice from the IoMG Regulator for safe-keeping, now they offer 50p/£ as though they have all the right in the world to keep the other half of our money to repay HMT the money it spent in moving Edge deposits to ING!

It's criminally unjust and no one will do anything about it because the Government itself is behind this travesty of justice wrought upon ordinary decent savers whose only ‘crime’ was to choose the so-called safe haven of the Isle of Man to deposit their life-savings. What lies! What deceit! Two British Governments could not between them bring themselves together to bring a right, proper and just outcome to people depending upon their savings for their very survival. It’s disgusting! It’s abhorrent! It’s sickening! It’s happening right here, right now under the ‘watch’ of the Government of the ISLE OF MAN. Do not under any circumstances believe any publicity given in pursuit of securing funds in this island. It’s simply not worth the risk; take a few points less and save your hard earned money somewhere safe where they value customers enough to refund their deposits in full - 100% - not on this island where they don’t even have a bank of last resort and concoct schemes that claim to pay you compensation – but then claw the money back again before you've even got your capital back, let alone lost interest.

It is a clear sign of the way modern humanity is moving; liars such as Clinton and OJ Simpson started a trend in warping the English language that others have utilised in 'spin' techniques to tell 'inexactitudes' in the hope of catching the unwary. Takers win and givers lose when God is no longer 'watching you' and you really must take all you can before leaving this world for good because you're 'worth it' – so they tell you. Where the hell are we all going.
Ice

Dave Manly

Mon, 27 Apr 2009 21:59:18 -0400

The result of the pathetic and spineless attitude of the IoM Government in not fighting for the return of the £550 Million from London can be seen with the emergence of desperate blogs like this one http://iompauper.blogspot.com

The depositors should not be having to fight for the injustice of the £550 Million theft to be overturned, that is a clear role for Tynwald!

Six months on and we are STILL no nearer a resolution!! How come cat charities seem to be able to convince the UK Chancellor that it is in his interest to have the money returned, yet Tynwald cant make a case for the KSF depositors?

As the blogger points out, many people were forced to use IOM banks as they could not get UK ones. The IoM also then passed on the UK FSA advice for KSF to put its money in a dodgy UK sister bank. The UK has an obligation here yet the IoM Government seem to prefer throwning Manx Taxpayers money at spin rather than political dialog.

I suppose it is not that suprising if Tynwald was also conned into forking out £500,000 for the defunct Vista Windows which even Microsoft admit is rubbish.

David R Morrison

Wed, 29 Apr 2009 00:42:14 -0400

The story continues.
And it will be continued. The IoMG seems totally lost with its apparently normally approach of "See no evil, hear no evil, speak no evil" approach typified by Allan Bell's style. The IoMG is just about to suffer a major embarrassment when its ridiculously crude attempt to protect the insider incompetents whose inaction led to this disaster for basically innocent depositors is rejected.
The truth will out, it always does. The politicians simply hope it comes out slowly and when the guilty have been able to quietly retire with their spoils.
The current situation looks a little more problematic. I would suggest that the House of Keys members, and the ministers here, spend some time reflecting on the the appropriateness of their joint approach of burying their heads in the sand, and hoping that their judiciary might be able to bury legitimate complaints, and rise to the situation with some significant proactive measures.
It is truly unfortunate that those the House of Keys had appointed failed them, but that is the reality, time for them to move out from the false protection of denial and assume their responsibilities.