“The plan”

Posted 14/11/2008 - 20:47 by Podcarson

Just so I keep my word – here is an outline of my plan for KSFIOM solvency.
I’ll start with a metaphor, if you don’t mind: what we have on our hands is a very big tank of water with water running out of it rapidly (that’s the bank). We are standing and watching our water, which we need in order to live obviously, disappearing. We need some kind of container to take hold of the water drifting a way. We each have a glass and we can fill it up – but that’s not enough to live on of course (that’s the DCS). But – Hey! There’s a big tank, not as big as the first one but quite big, right next to us, which if we all hold together can take into it the main bulk of the water we are dependent on for our lives. So wouldn’t that be the logical thing for us to do – hold that smaller tank against the dripping tank and get our water back?
Now back to life and numbers – a bank (like any company) has to be able to balance its assets and liabilities. Any way you turn it around KSFIOM is missing between 200 to 400 million GBP in order to do that without the money under administration in the UK. As we are the biggest creditors the bank has (the bank probably owes us all together some where between 820 to 930 Million GBP) we are in a position to agree that the bank owes us less money, the amount needed for it to regain solvency. We can do that in exchange for a share of the bank.
How can this be done? Well let’s say everybody wavers 25% of their deposit, and let’s say that sums up to 200M GBP, and let’s say the IoM government agrees to give what’s needed still for the bank to regain solvency, than every one will get shares in a proportion of the amount they lost in the deal – if I had 100K pounds I gave up in this move 25K and I will receive 25 shares… if you had 1 million you would lose 250K but gain 250 shares.
All of this would form a co-operative bank. How will things be run? How will decisions be made? Those are complex issues I don’t need to go into right now because the fact (that I was unaware of) the island has no legal frame work for a co-operative makes it quite irrelevant. I myself come from a co-operative way of life called Kibbutz in Israel, and have managed a few co-operative efforts, so this seems to me as the natural solution. I did notice that the idea of co-operative ownership was unclear to many people on the site. I agree that co-operation between people who never met and may not have the same interests is not the best idea… but still it would have served as a last resort idea if needed, and I can only say that the problems that rise up from this solution are smaller than what we all would face if the bank goes into liquidation.
This will remain a last resort solution, and I believe I more or less sent it to anyone that can make use of it. I’m now optimistic of another outcome of this whole situation (as expressed in my last entry). If it doesn’t work out this idea still may play a role… even legal frameworks can be changed if the right people can be persuaded. I’ll just have to wait and see over the coming weeks where things are going…
I hope, and I currently believe, that the solution – maybe not a 100% solution, but a solution – is on its way.

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