Exchange rate discrepency

  • DaveW
  • 10/12/08 31/05/09
  • a depositor
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Posted: Tue, 09/06/2009 - 08:17

We followed the DAG advice in rejecting the proposed scheme but now we find we have lost out by nearly £5000. As our account is in dollars, the scheme's exchange rate was based on an April conversion rate of 1.46USD whereas they are now using the liquidation date of May 27 which gives us a 1.60USD exchange rate. Would we be better off not claiming on the DCS?

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Shortchanged?

  • Shiney
  • 13/10/08 n/a (free)
  • a depositor
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  • Tue, 09/06/2009 - 18:37

We also held a deposit in US Dollars and feel that it's unfair the exchange rate for the DCS is significantly worse at conversion than the SOA.

DAG got their way with the result of the voting but we will be one of those that lose out along the way... it's not right and should be addressed!


If the bank went into

  • frog
  • 10/10/08 13/09/09
  • a depositor
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  • Tue, 09/06/2009 - 15:51

If the bank went into liquidation on the 9th October, then the exchange rate would have been around $1.77=£1. Swings and roundabouts really.

I don't buy this 'sterling subsidising dollars' argument anyhow - no one is subsidising anyone here.


Exchange rate

  • run668
  • 18/10/08 31/05/09
  • a depositor
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  • Wed, 10/06/2009 - 01:06

It is now clearly understood that any FX deposit will be converted in pound at the time of the liquidation, and all payments will be made in Pounds.

All that FX depositors are asking for is that if they had 100 units of a currency in their account on the 8th of October, they get in the end 100 units of that currency after converting the payments. (ie. 100% of their deposit back).

If neither of us is getting 100%, then FX depositors would like to have X% as with any other depositors. Not less not more ... Yes. FX depositors could get more than 100 units if the Pounds continues to go back up as payments are made and that is as unfair as getting less.

IT IS POSSIBLE to account the % of return in the currency of choice. It is just a matter of willingness on the part of the liquidation manager.

Luc


Yes this has cost me a great deal as well

  • expat
  • 10/10/08 31/05/09
  • unspecified
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  • Tue, 09/06/2009 - 14:17

Yes this has cost me a great deal as well, you can imagine I am very unhappy about this, particularly as In was the first person to fight for a decent exchange rate with IoM. Seems the foreign currency holders were not part of the DAG Strategy Teams thinking doesn't it?
Still think the SoA was a bad deal?


Yes this has cost me a great deal as well

  • Anonymous
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  • Tue, 09/06/2009 - 16:15

How could the DAG Strategy Team have taken account in advance of changes in foreign exchange rates that occured after the vote on the SoA? Neither the Bishop of Sodor nor any clairvoyants are members of the DST as far as I am aware.

Also, the HNW committee, of which you are a member, voted against the SoA. Did you do that in the knowledge that the dollar exchange rate would change so as to disfavour dollar account holders, or does the HNW team also not boast any clairvoyants?


Yes this has cost me a great deal as well

  • manx-person
  • 17/10/08 31/05/09
  • not a depositor
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  • Tue, 09/06/2009 - 19:10

Your question about Clairvoyants is a bit silly isn't it?

As I am sure you are aware all of the Clairvoyants that were formerly depositors saw this coming and withdraw their funds some weeks before the liquidation application was made to the court.


Yes this has cost me a great deal as well

  • Anonymous
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  • Tue, 09/06/2009 - 19:25

Manx: that was silly of me, you're right. Do you know whether any of the bank's employees were clairvoyant?


Yes this has cost me a great deal as well

  • manx-person
  • 17/10/08 31/05/09
  • not a depositor
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  • Tue, 09/06/2009 - 19:58

I don't know about the bank, I thought you were going to ask me about the FSC. I think it can be established that there are no clairvoyants employed within the Commission.


@ Expat

  • podather
  • 10/10/08 31/05/09
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  • Tue, 09/06/2009 - 15:07

I think you may be a little wrong on your final point.
The proxy holder for the DST was a foreign currency depositor in dollars
So he lost a lot of money aswell.
Maybe the decisions of the DST were made for the benefit of all depositors and not just those in a minority.

You were a member of the HNW's 9 man committee yet you voted against the SOA
Were foreign currency depositors not part of the HNW's strategy either ????
or did you not have any influence on that point ???

Nodody will know whether the SOA was a good or bad deal until all this has finished but non of us have the benefit of hindsight or else we would not be here in the first place.


Perhaps they were

  • Anonymous
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  • Tue, 09/06/2009 - 14:28

"Seems the foreign currency holders were not part of the DAG Strategy Teams thinking doesn't it?"

Given that the >50k sterling depositors would have been funding the additional pounds received, assuming the FX positions weren't hedged


Don't assume.

  • expat
  • 10/10/08 31/05/09
  • unspecified
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  • Tue, 09/06/2009 - 14:55

Don't assume.


FX hedging: Detail in Frog/MS session... (link)

  • follow_the_tao
  • 11/10/08 31/05/09
  • a depositor
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  • Wed, 10/06/2009 - 08:57

April 09 meeting starts at 38:46

'..currency position was hedged but was closed out by the counter party when the bank went into provisional liquidation/administration... and alternative hedge not implemented...'

link:
http://www.kaupthingsingers.co.uk/lisalib/getfile.aspx?itemid=20143