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Proposal to improve protection for vulnerable depositors in the event of a local bank insolvency

2015-09-13 23

The Department of Economic Development is consulting on a proposal to change the order in which recovered money is repaid in the event of a local bank becoming insolvent.

The move would give ‘preferred creditor’ status to eligible deposits as defined and covered by the Island’s Depositors’ Compensation Scheme (DCS), ranking them ahead of other creditors in the liquidation process.

This change would mean that vulnerable depositors and, if claim was made to the DCS, the public purse would be reimbursed earlier. For example, when Kaupthing Singer & Friedlander failed, the DCS pay-outs were funded initially by the Government, these would have been repaid earlier (reducing the financing costs) if preferred creditor status was in place.
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Savers hit as Bank cuts protection on deposits to £75,000 for first time since financial crisis

2015-07-02 23

Cash in bank accounts will only be guaranteed up to a limit of £75,000 from January 1, 2016, the Bank of England has said, down from the current limit of £85,000, because of the euro's weakness against the pound.

Senior Conservative MP Andrew Tyrie called the decision "absurd" and urged the Chancellor George Osborne to push for the EU's rules to be changed to allow the guarantee to be raised back up to £85,000.

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Entrepreneur Robert Tchenguiz forced to sell assets to pay Kaupthing creditors

2014-09-11 23

Flamboyant entrepreneur Robert Tchenguiz has had part of his business empire sliced off by receivers seeking to recoup funds for creditors of Kaupthing, the failed Icelandic bank. ...

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SFO settles with Robbie Tchenguiz

Posted 31/07/2014 - 10:40 by anrigaut

2014-07-30 23

The Serious Fraud Office has settled Robbie Tchenguiz's damages claim for wrongful arrest just days after it settled a related claim with his older brother Vincent.

The financial watchdog will pay £1.5m to settle claims brought by Mr Tcehnguiz junior, his property investment company R20, and his trustee, Rawlinson & Hunter Trustees.

The claims stem from his arrest and the dawn raid on his home in March 2011.

The raid related to an investigation into the collapse of Kaupthing, the Icelandic bank, and its British subsidiaries.

Mr Tchenguiz and his related companies have also been awarded costs, to be determined by the High Court. ...

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SFO to pay property developer Vincent Tchenguiz £6m over botched inquiry

Posted 26/07/2014 - 08:50 by anrigaut

2014-07-24 23

The property developer Vincent Tchenguiz will receive at least £6m and an apology from the Serious Fraud Office (SFO) following the collapse of an investigation against him two years ago.

The settlement for damages and costs relates to an investigation in to the troubled Icelandic bank Kaupthing, which went under during the 2008 banking crisis. Tchenguiz's brother Robert is still in talks over an agreement with the SFO and is continuing to pursue his claim for £100m in damages. ...

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Tchenguiz brothers: SFO arrest continues to hurt busines

Posted 08/04/2014 - 07:47 by anrigaut

2014-04-06 23

Robert and Vincent Tchenguiz, the Iranian property tycoons, have reported a “significant loss of business” due to their unlawful arrest by the Serious Fraud Office in connection with the collapse of Iceland’s Kaupthing Bank.

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The next round of litigation will take place in the High Court today and tomorrow, in front of Mr Justice Eder.

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Kaupthing creditors fear Investec intends to walk away from £150m debt

2014-04-05 23

Investec, the FTSE 250 banking and asset management group, is preparing to walk away from a debt of about £150m owed by one of its offshore businesses, according to those chasing the money on behalf of creditors to the failed Icelandic bank Kaupthing.

The debt, equivalent to almost 40% of the Anglo-South African group's profits for 2013, is an unintended legacy of Investec's administration of a hugely complex offshore trust on behalf of Robert Tchenguiz, one of London's most active corporate raiders before the 2008 banking crisis.

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In January a court in the Channel Islands found that an Investec subsidiary, Investec Trust Guernsey (ITG), must be held liable for some of the borrowings Tchenguiz had taken on, through his trust, to finance investments. Investec is appealing against the judgment.

With remaining assets in the trust – Tchenguiz's home, his office in Mayfair and several other properties – estimated by creditors to be worth about £30m, the shortfall on the £180m owing to Kaupthing is likely to be enormous.

Tchenguiz is not personally liable for the shortfall. He is appealing against the Guernsey court's decision affirming Kaupthing's claim over trust assets.
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Financial offenders must be named if bank reforms are going to work

2013-12-15 (All day)

The shocking tale of Lloyds' mis-selling culture ended with a deserved £28m fine. But not one person was singled out for blame. As Iceland shows, that's got to change ...

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HBOS heat turns on head of new City regulator John Griffith-Jones

Posted 11/04/2013 - 08:40 by anrigaut

2013-04-09 23

The fomer head of accountants KPMG, John Griffith-Jones, has been dragged into the HBOS furore as questions are asked about his suitability to head the City's new regulator given the auditor's role at the failed bank.

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The accountancy profession's regulator, the Financial Reporting Council, also confirmed that it is considering an investigation into KPMG following last week's scathing banking standards commission report into HBOS and an upcoming Financial Services Authority inquiry. The FRC said it would "consider the commission and FSA reports to identify whether there is a case for an investigation under our powers".

Its scrutiny of the role of KPMG at HBOS may be pre-empted by the Tyrie commission's final report. It will contain a chapter on the tax experts, auditors and accountants and their role in banking. The report is expected to be published next month and could also address the audit work of Deloitte at Royal Bank of Scotland. ...

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New watchdog’s chairman urged to resign over auditors’ role in HBOS debacle

Posted 08/04/2013 - 08:59 by anrigaut

2013-04-07 23

Tony Shearer, the former chief executive of Kaupthing Singer & Friedlander, and Paul Moore, the HBOS whistleblower, have demanded Mr Griffiths-Jones’ head in protest at his role as chairman of accountants KPMG until last year, which as auditor gave the bank a clean bill of health in the run-up to the crisis.

The attack on the chairman of the FCA, which was officially set up only last week, adds another leading City figure to those caught in the HBOS fall-out.

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Mr Griffiths-Jones was head of KPMG when it audited HBOS, Bradford & Bingley, and Singer & Friedlander, all of which were rescued by the taxpayer. KPMG also sided with HBOS in an internal report in 2004 against Mr Moore, whose warnings about the bank’s risk controls have since been vindicated. In a letter to Andrew Tyrie, chairman of the PCBS, Mr Shearer said: “A wise person would have understood that the former chairman of KPMG could not be chairman of the FCA.

So why did Mr Griffiths-Jones accept the role, and why did the Treasury and the Bank of England ever think of asking him? He has to now resign.”

Mr Moore said: “It is out of the question that Mr Griffiths-Jones should be staying where he is.”

The FCA declined to comment.

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