SELLING THE BANK

  • Anonymous
  • unspecified
  • Offline
Posted: Mon, 17/11/2008 - 12:18

In Mike Simpson’s update of 14 November he states that confidential discussions with various stakeholders regarding the sale of all or part of KSF (IoM) are still underway. Depositors may be hopeful that the bank is sold, but it is of concern that many depositors with up to 50,000 GBP at stake may not get 100% of their money back as would be the case if the bank goes into default, thus triggering the DCS. Any comments?

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SELLING THE BANK

  • Jerome.broke-in...
  • 14/10/08 14/07/09
  • a depositor
  • Offline
  • Mon, 17/11/2008 - 13:09

In Mike Simpson’s update of 14 November he states that confidential discussions with various stakeholders regarding the sale of all or part of KSF (IoM) are still underway. Depositors may be hopeful that the bank is sold, but it is of concern that many depositors with up to 50,000 GBP at stake may not get 100% of their money back as would be the case if the bank goes into default, thus triggering the DCS. Any comments?

I can see no way that any sale of the bank (which implies it will get it's license back) could possibly be permitted with out all depositor of every kind getting all their money back.
Though I could easily see that there could be different conditions on withdrawals. i.e. term deposits must run to term. Also may be a limit on other withdrawals, though even that could be problematical to enforce.


No I think if they can't pay

  • Bill
  • 13/10/08 n/a (free)
  • a depositor
  • Offline
  • Mon, 17/11/2008 - 12:37

No I think if they can't pay 100% that is still a default and the scheme would have to top up the difference for anyone up to 50k. I hope the objective is to get 100% for everyone - then there would be no default and no need for compensation. Time is an issue though.