I wrote to an underling and received this reply - substantially escalated. The claim is very clear -

"... if the Isle of Man office were to close, Kaupthing Bank hf will cover all client funds to the value of 100%, this guarantee is lodged with the Isle of Man Supervision Commission."

On this basis I left my money there.

I cannot see how they could wriggle out of that claimed responsibility.

BWD

On 08-09-26 18:10:

Dear Mr Darvell

Thank you for your email received this morning.

I hope that the following will provide the necessary information, but please let me know if I can be of further assistance.

Independent Ratings

Kaupthing Bank hf continues to enjoy strong independent credit ratings, which are currently classed as "Stable" by both Moody's and Fitch:

Moody's: Long Term: A1 Short Term: P-1

Fitch: Long Term: A- Short Term: F2

Parental Guarantee

Not only are all deposits held with Kaupthing Singer & Friedlander in the Isle of Man covered by the Depositors Compensation Scheme contained in the Isle of Man Banking Business (Compensation of Depositors) Regulations 1991, all deposits are also fully guaranteed by Kaupthing Bank hf. The parental guarantee from our parent, Kaupthing Bank hf, guarantees that, if the Isle of Man office were to close, Kaupthing Bank hf will cover all client funds to the value of 100%, this guarantee is lodged with the Isle of Man Supervision Commission.

Group Website

The Investors Relations section on the Group's website can provide you with our Annual Results, commentary on the ratings, and much more information that may be of interest to you. You can access it using the following link:
http://www.kaupthing.com/Investors/Introduction-to-Investors

Liquidity

The Bank has a clearly stated objective of having ongoing sufficient secured liquidity to repay all maturity obligations for at least 360 days. At end December 2007 the liquidity of Kaupthing Group was sufficient to cover all obligations for more than 440 days, reinforcing the Group's strong liquidity position.

Please let me know if you require any further information, or have any questions.

Kind regards

Jayne

Jayne Leece
Assistant Manager - Banking Department, Treasury
Kaupthing Singer & Friedlander (Isle of Man) Limited

PO Box 197, Samuel Harris House, 5-11 St Georges Street, Douglas, Isle of Man IM99 1SN

Direct Line: +44 (0) 1624 699260
Fax: +44 (0) 1624 699200
E-mail: jayne [dot] leece(?)kaupthing [dot] com

www.kaupthingsingers.co.im