Manx Herald Isle of Man

KSF (IOM) Select Committee issues call for evidence; whilst DCS gets a cash boost

Sat, 01 Aug 2009 18:40:00 -0400

The Select Committee of Tynwald, established at the July sitting of the Court, has issued a call for interested parties to submit evidence on the

Mat Walker

Sun, 02 Aug 2009 04:49:22 -0400

Glad to hear the members of Tynwald thing this is amusing. Maybe they will laugh 30 years of savings gone. Maybe thy will laugh at those who have lost their houses. Maybe they will laugh at the damage currently being done to the Manx economy.

Shame on Tywald.

Jim

Sun, 02 Aug 2009 18:04:29 -0400

Why could not Tynwald accept the need for an independent committee of inquiry? Simply because then it could not engineer the outcome to make the Isle of Man look a credible offshore financial centre despite one of its banks 'going down the pan'.

The trust 10,000 people put in the Isle of Man when they put their savings on deposit with KSFIoM has been utterly betrayed. As a consequence the IoM is fast losing credibility as an offshore centre.

The IoM will reap the whirlwind that was created by the crass stupidity of the directors - backed by the FSC - to place over half the assets of the bank, totally unsecured, into Kaupthing UK which went into liquidation in October 2008. It doesn't need 7 months to get at the truth which I have stated here in less than 7 minutes.

The IoM stands to reap the whirlwind of its failure to restore to depositors everything over £50,000 that they put in the trust of one of its banks, because depositors are now posting videos on Youtube warning prosepective depositors & investors: "DON'T BANK ON THE ISLE OF MAN"

If the government choses to 'fiddle whilst Rome burns' then it will reap the whirlwind of its failure to restore to all depositors the money they put in the trust of KSFIoM.

Jim

David R Morrison

Sun, 02 Aug 2009 23:04:23 -0400

Percursor:For the editor
In two previous posts, which as far as I can see it you censored, I made some of the points you've made in this article. I don't know why you decided to censor but I didn't see anything inaccurate in either. But everybody has their limits.
Anyway, just to add bulk, here is another comment. Let's see how you handle it. Beware: Power corrupts, absolute (editor) power corrupts absolutely.

end of precursor, start of comment.....
**********************************

I think the most important observation in the article was that the HoKs found the selection of the TSC panel amusing.
People laugh for various reasons. Two of the most important ones are the identification of absurd inconsistencies, and the other is protection in the face of embarrassment. It strikes me that these two most important reasons were present in that process. The HoKs isn't fooling anybody, not even themselves, with the TSC enquiry and hence the real laughter.
The other laughter was protective embarrassment about just who was to pick up the poisoned chalice of the chair.
I would lay out the obvious conclusions but that might run the risk of seeming to inflame IoM opinion, people do try and have some pride in their government. But I'll refrain and trust that the reality is clear to the thoughtful reader. My only question is when might the Manxes react to the charade?
There were clearly identifiable directors and officials that were tasked with protecting depositors, they self-evidently failed, but to date have been effectively shielded from assuming their responsibilities. They failed and they should pay the normal price of failure which is demotion. This is natural justice. There are serious social reasons for this process. Currently the process cannot be seen to be operating in the IoM, hence the charge of corruption. It will be the acid test for Watterson as to how exactly he saves his political integrity in arranging the appropriate finding.
No wonder the HoKs was laughing.
The real problem for Manxes is that if the politicians (get to) thinking they can avoid responsibilty then what price democracy? I think the Manxes have already encountered this problem

Jim

Mon, 03 Aug 2009 06:03:59 -0400

The exercise of democracy on this small island is not one of the IoM's strongest virtues. Manx folk just want a quiet life to enjoy the prosperity that the world brings to its shores through deposits & investments. The dispossessed KSFIoM depositors are just an irritation to the government which claims that the effect of the loss of the bank has had no effect on the IoM economy a its AAA credit rating.

I think it is going to be in for a rude shock when it finds the world no longer considers this offshore centre a place on which they can bank with complete confidence.

The depositors have no quarrel with the people of the IoM; their gripe is directed at the directors & the FSC who failed to exercise due diligence in what they did that brought down the bank. Manx folk need to wake up to the potential disaster that is going to affect the islnd's economy unless the government does the right & honourable thing to protect the well-being of the IoM, namely restore all deposits 100%

Jim
blog: http://ksfiom-blog.blogspot.com
site: http://www.kaupthingiom-dag.co.uk

Tony Cavanna

Mon, 03 Aug 2009 06:52:19 -0400

Had the IOMG acted quickly to resolve the situation and guaranteed deposits they would have had a PR triumph, thousands of grateful depositors and Brown and Bell would truly have had something to be proud of. Instead they have thousands of angry depositors and a looming PR disaster, word is spreading that the IOM is not a safe place to bank. I hope Manx residents will lobby their government for they might be treated just as shabbily the next time there's a bank failure on the IOM. As far as I'm concerned when Tony Brown said “As far as the situation for the Isle of Man is concerned, we are accepting our responsibilities and endeavouring to rectify the situation” at a Treasury Select Committee
and then proceeded to attempt string us along to fob us off he became a collaborator with his namesake in Downing Street. Whilst IOMG tries to brush us under the carpet I will be telling anyone who cares to listen "don't bank on the Isle Of Man".

Tony Cavanna

Tue, 04 Aug 2009 18:29:41 -0400

An extract from the letter I sent to the Tynwald about this.

I've seen this sort of behaviour in clubs where everyone wants the benefits without having to take responsibility or do any of the work.

I doubt any depositors who had entrusted their savings to KSFIOM would find as much hilarity in their situation as the Tynwald apparently does. Many depositors have been deprived of their life savings, which they were using to provide themselves with a pension. Some depositors were using their savings to look after elderly relatives, in some cases depositors are now destitute, and in at least one instance, apparently, a depositor has committed suicide. I fail to see the humorous side of the fates of these depositors, clearly I lack a Manx sense of humour.

If members of the Tynwald are unable or unwilling to conduct an inquiry then I suggest you contract it out to someone who is capable of doing so.

Furthermore, as a depositor who's been deprived of my life savings which were entrusted to your jurisdiction I demand you conduct a fully open public enquiry. You haven't got anything to hide have you? Mr Brown boasts that the IOM has an open government; Mr Bell crows every time the IOM wins a Financial Industry award nobody's heard of or the IOM gets an AAA from a ratings agency (surely a thoroughly discredited industry by now). But if Mr Bell and Mr Brown are correct there shouldn't be any facts that don't fit the perception should there?

Some Tynwald members have already warned that a private inquiry will be perceived as a white wash.

Word is spreading that the Isle of Man is not a safe place to bank. Had the IOMG acted quickly to resolve the situation and found some way to guarantee deposits fully you would have had a PR triumph and thousands of grateful depositors. Instead you have thousands of angry depositors and a looming PR disaster. The government of the IOM reminds me of a cartoon character who's run off a cliff but hasn't realised it yet.

DH

Wed, 05 Aug 2009 07:44:20 -0400

I certainly don't see anything remotely funny in having lost my family's life savings; nor in the fact that so many honest depositors, many elderly, are suffering hardship and homelessness; I feel deeply sickened and saddened that whilst these pathetic 'clowns' laugh, people are being driven to suicide. My message is, grow up, face up and help to right this wrong.