Close IOM Bank Accounts !

  • worriedsaver
  • 10/10/08 31/05/09
  • unspecified
  • Offline
Posted: Wed, 29/04/2009 - 11:01

I am one of the large depositors in KSF(IOM) who potentially stands to lose a substantial sum in the bank collapse . I believe the IOM Government is not doing enough to protect the depositors interests . I believe that the IOM Government could do more to put pressure on Kaupthing Iceland to honour the parental guarantee and could certainly be doing more to bring about the return of the £540 Million of “our” money that was transferred to KSF (UK) for “ safe-keeping ” immediately prior to the bank collapse . Who of us really knows what happened when the UK Treasury “ advised “ that this transfer be made . May be there are more sinister motives behind this . However , if the IOM Government is unable to bring about the return of our funds and they do genuinely care about depositor’s savings I believe that they should arrange a loan from the UK Treasury ( who have a constitutional duty to protect the IOM’s financial interests) , until this matter is resolved . As I understand it the IOM Government has already arranged to possibly borrow £ 180 million to facilitate the SOA . Given the present climate of low interest rates I do not see why this loan could not be extended to cover the full amount frozen in the UK in order that we all receive 100% of our deposits back without further delay . Call me naïve and simplistic if you like but in the scheme of things and given the huge loans that are flying around at present to bring about a re-capitalisation of the banks I do not see why this could not be done . I am disappointed as I sit and watch as countries like Norway and Finland and various other European states are able to guarantee all their savers deposits in Kaupthing and interest payments since October as well in most cases . It seems inconceivable that a jurisdiction such as the IOM is unable to offer the same reassurances of a return of our deposits if they value their reputation and that of the banking sector in the IOM .. I am therefore becoming increasingly angry at the IOM Government’s inactivity and I believe that we have all suffered enough from months with no access to our hard earned savings . In my opinion since the bank collapse all the IOM Government has done and in particular with the proposal for the present SOA is no more than a “ face-saving” and “ damage limitation” exercise on their part in order to save their reputation and avoid the inevitable media coverage that would result from a full bank liquidation on the IOM . . There is also obviously a political slant to the IOM Government wishing for us to accept the SOA rather than for the DCS to have to be activated and negatively affect the pockets of the islanders and their voters . I also now believe that the only thing that will motivate them sufficiently to act harder to facilitate a full recovery of 100% of our savings is a threat to their livelihoods in the form of a subsidence or meltdown of the IOM banking sector which is so important to the IOM economy . I have heard all the arguments for not encouraging a withdrawal of funds from the IOM and how this may be counter-productive but I do not accept these arguments . In my opinion actions speak louder than words . As I am fortunate enough to be a depositor in KSF(IOM) who still has some savings remaining in other bank accounts in the IOM , I have therefore now decided to close these accounts and remove my funds from the island and I am advising my friends and family to do the same . I would urge any of you who too still have savings in the IOM to do the same and then hopefully the IOM Government will now realise that unless they do more for us the consequences for the IOM economy could be catastrophic .

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Two points

  • IoM-neveragain
  • 12/10/08 30/03/10
  • a depositor
  • Offline
  • Thu, 30/04/2009 - 08:31

I am amazed worriedsaver that only now do you conclude that its time to move savings out of the IoM. I closed mine last November and advised all those I knew that the IoM is a very dodgy place to have money. It’s safer to leave it in bundles on your front lawn!

Secondly you too have raised the spectre of a loan from the UK Government to the IoM.
Its not needed!!!
The IoM Government are awash with money
They have surplus funds, unlike the UK which has huge borrowings.
The IoM Government have a Reserve Fund, sitting in the bank, not needed, surplus to requirements, over and above their demands, how else can I put it??

Quote from Page 13 of the IoM 2009 Treasury Budget-
In accordance with existing policy, in 2008-09 estimated investment income generated by the Reserve Fund and the Currency Account of £12.0 million is to be re-invested. However, £5.6 million of this income will be utilised to meet Interest charges on the Manx Electricity Authority £185 million Bond issue in 2008-09, and £11m has been earmarked for payment under the Kaupthing Singer and Friedlander Early Payment Scheme. A further contingency sum of £94 million has been included in the 2008-09 probable expenditure pending Tynwald approval to a further Early Payment Scheme which will be submitted to the February sitting.”

On Page 37 of this same document is identified that the Reserve Fund stands at £248M AFTER the transfer of £110M to meet the above costs (the Reserve Fund was £349M the previous year)

Well said - no faith in IOM

  • alandob
  • 12/10/08 31/05/09
  • a depositor
  • Offline
  • Wed, 29/04/2009 - 20:59

The IOMG are totally incompetent and we have 6 months evidence of this. I am also in the process of removing all my remaining funds from the island. Why would anyone vote for SOA.

lots of people have behaved

  • jingleed
  • 10/10/08 31/05/09
  • a depositor
  • Offline
  • Wed, 29/04/2009 - 17:37

lots of people have behaved badly over this matter. it should be out in the open

as a >50k depositer, im hoping that we don't go soa

Well said

  • bellyup
  • 10/10/08 09/01/10
  • a depositor
  • Offline
  • Wed, 29/04/2009 - 17:14

Yes you are absolutely right this is what everyone SHOULD do .

The IOMs role in this fiasco has been despicable and now they want to stuff us with this SOA which will give us no advantage but will GIVE THEM a hundred loopholes to squirm through.



bellyup will we at least get 60percent in a liquidation

  • hippychickrobbed
  • 03/11/08 31/05/09
  • a depositor
  • Offline
  • Wed, 29/04/2009 - 17:57

bellyup will we get at least 60 percent or is it some gamble for higher?

SOA is a gamble

  • bellyup
  • 10/10/08 09/01/10
  • a depositor
  • Offline
  • Wed, 29/04/2009 - 18:28

Its the SOA that is the gamble.
Putting one trust in an unproven untreated half baked scheme put together by the IOMG that has already tried to wangle its way out of doing anything for us is a MASSIVE GAMBLE.

WHY dont they want to trigger their OWN DCS?

I dont know about you but i am hoping for at least 85%

I want 100% of my money back but most of all I dont want to be in any way UNDER the power of the IOMG.

28 Apr 09 LP update

  • Anonymous
  • Offline
  • Wed, 29/04/2009 - 21:40

"This is based on certain assumptions and our current estimates of what may be recovered in respect of the assets of KSFIOM and current estimates of liabilities of the Company. It illustrates that on a Low Case basis the dividend that might be payable is c.74p in the £ and on a High Case basis might be c. 88p in the £."