PARENTAL GUARANTEES - REGULATION

  • steveservaes
  • 13/10/08 31/05/09
  • unspecified
  • Offline
Posted: Mon, 18/05/2009 - 14:27

KSFIOM and KSFUK are - it seems - both creditors of Kaupthing hf in Iceland, if only by virtue of the contractual claim for reimbursement of shortfall under the PG.
KSFIOM is a creditor of KSFUK.
The huge hole in our monies seems to arise in consequence of appalling/negligent/criminal/fraudulent/insider treatment of our money as if it were the "piggy bank" of a clique of speculating businessmen, many of them Icelandic.
Now surely both the UK and Icelandic regulators had duties to monitor the banks in their jurisdictions and hence should have stopped the activities that gave rise to our losses. After all, that Shearer guy at Singer F gave them the heads-up from the off.
In relation to the UK, I don't think you can sue the FSA directly (see Equitable Life) but you can make out a case for compensation. Surely KSFIOM has a case for compensation - unless KSFIOM's directors were in on this? Has MS/ his lawyers done anything to press this? Will they have a chance to do so in the future - eg into the public inquiry into the Icelandic banking collapse which I have heard mentioned?
As for Iceland - I have read that Iceland introduced a law early in October saying that the Kaupthing monies were to be prioritised for paying the hf's retail depositors first. Now this is a serious affront to justice. Its one thing the UK using its own government money to compensate retail depositors (and then standing in their shoes to take a % hit on their returns from the bank) but it seems in Iceland that they are using the bank's money and not government money to do this. Because this will eat up most of the Bank's assets there will be nowt left to pay unsecured non-retail creditors.
Now this is outrageous and something where the UK and IOM governments should be forcing the Icelandic government's hand: ie if the iceland government wants to protect HF retails depositors it must do it with government money, not by downgrading other creditors such as us. How can we make sure the IOM government leans on the UK government to force the iceland government to treat all creditors of HF equally and return any priority payment to retail depsoitors to the "pot" from government funds (whether borrowed from the IMF or elsewhere).
Then there is the question of the Icelandic regulator's total failure to regulate K hf meaning there is not pot left to compensate its creditors - ie KSFIOM. Again, what route is there to hold the regulator to account?
UK/Iceland discussions are ongoing but no apparent dealings with the above issues.

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how shall I progress it with my mp..

  • hippychickrobbed
  • 03/11/08 31/05/09
  • a depositor
  • Offline
  • Wed, 20/05/2009 - 05:27

I shall be in the uk at the end of the week I want to progress this with my mp, what shall I say?


What to do about this?

  • glen07
  • 21/10/08 n/a (free)
  • a depositor
  • Offline
  • Mon, 18/05/2009 - 22:31

Hi and thank you for this post. A very frustrating issue. Is this something the legal team should be looking at? Also I wonder if this matter should be brought to any sympathetic MP's attention so questions can be asked? I hope the International Monetary bodies are watching this and have guidelines for use of banks monies? Can you suggest who we should write to about this matter?


return of funds from Iceland / UK

  • clodhopper
  • 18/01/09 31/05/09
  • a depositor
  • Offline
  • Mon, 18/05/2009 - 17:46

If the IOM government followed the actions of the rest of Europe and paid out their depositors 100% then investigated seriously the events that lead up to the crisis that has occurred on the IOM then they would have an interest in retrieving the funds.

Until they pay us as innocent depositors in what was promised to be an AAA regulated bank, they can expect to get bad press - more than they are getting at present.

Then, if they want to sweep their bad banking practice, conflicts of interest - the list could go on as we well know; they the IOM government will be the loosers not innocent savers.

Give us back 100% of our savings now not after protracted 'legal' / twisted procrastinations.