Financial Oddments

Posted 09/02/2009 - 13:58 by direstraits

There are two questions which I am sure have already been raised by other DAG members but just in case.

  1. Why is John Cashen on the board of the FSC IoM and also a director of KSF IoM? Surely there has to be a conflict of interests?

  2. At the TSC inquiry John Aspden, when being questioned about the transfer of the 550million, said that the original amount transferred was greater …. at this point the sound broke up and I may be wrong but I believe he said 830 million? If this is the case, what happened to the rest of the money? Even if I am wrong, I am still of the firm opinion that this money was placed in KSF UK for a reason other than that which has been offered. We have all seen on recent TV programs how easy it is to move cash about without too much of a problem. What, or who more likely, was it intended for?

FINANCIAL. Some people I know here in Spain told me quiet recently that they were feeling pretty secure as their money was on IoM. I asked them if they were aware that a bank on IoM had collapsed and the IoM Gov were doing nothing to remedy the situation. They were not aware and closed their account immediately and transferred well in excess ₤500k into three Spanish banks. Other friends of theirs have also removed substantial sums from IoM into Spanish banks. This is encouraging as it proves even at this level it is possible to undermine the credibility of the financial services offered by IoM. Spain offers a DCS (FDG) of €100k to each depositor and some slightly better returns on investment.

As a Plus: Spanish banks have not been subjected to toxic debts but have yet to feel the effects of the decline of the construction industry. Santander, the largest of the Spanish banks, paid out 350 million without any argument to depositors who had been victims of the Madoff scam.

As a Minus: After their recent spending spree, Santander had to raise 7.2 billion in a one for four rights issue. I am not sure what would happen if its UK held acquisitions, A&L, Abbey and B&B got into difficulties. Who would step in to save them, UK Gov or Spanish Gov, or?

ALTERNATIVE OFF SHORE ACCOUNTS. There are a number of deposit-takers operating in Gibraltar and do so as branches of UK banks or building societies. In these cases, the deposits are covered by the UK Financial Services Compensation Scheme, which, as of October 7, 2008, guarantees deposits up to a limit of GBP50,000. These branches include Barclays Bank PLC, Leeds Building Society, Lloyds TSB Bank plc, Newcastle Building Society, and Norwich & Peterborough Building Society.

I am sure that there are many in DAG members who, like me, are not able to contribute much but nevertheless, really appreciate all that is being done through the unrelenting hard work and diligence of a small number of dedicated members who are providing the confidence and support to us all. Without them and without the DAG website none of us would know what was happening. Thank you all.

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