Should the IoM Taxpayer contribute to the DCS fund

  • Anonymous
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Posted: Tue, 21/10/2008 - 10:53

I would be interested to hear whether the members of the forum think that the IoM taxpayer should contribute to this fund ?

Since the failure appears to have been precipitated by the UK and/or Icelandic Governments.

Answers please.....

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opps wrong place

  • Anonymous
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  • Wed, 22/10/2008 - 05:22


How about something similar?

  • Anonymous
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  • Wed, 22/10/2008 - 02:26

How about the IoM government loan the money to the DCS upfront, then they get repaid over time as the banks pay into the fund. At most they would be contributing the interest on the amount.

(BTW, this is how the UK FSCS deposit guarantee scheme works)


  • Anonymous
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  • Tue, 21/10/2008 - 13:42

I agree that any Bank "could go down" but all I am speaking of is minimising the risk. There was an analysts report on around March 2008 saying that Kaupthing was , from memory, 7.5 times more likely to default that the "average" European Bank see

In respect of the comment

  • Anonymous
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  • Tue, 21/10/2008 - 13:24

In respect of the comment "HBOS can go down the river overnight" - Unless I have missed something they haven't gone down any river.
MY point is that their is a reduced risk with large UK based clearers

What about ING????? A week

  • Anonymous
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  • Tue, 21/10/2008 - 13:28

What about ING?????
A week ago, saviour of the banking world, and yesterday on their heels.

Don't kid yourself, they can all go down.

Risk, reduced risk, I could have put my money with a "no risk" institution, and that could go down.

This isn't the result of "risk", but because of extreme circumstances - governments freezing accounts and transfers.

Isle of Man

  • Anonymous
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  • Tue, 21/10/2008 - 11:29

The Isle of Man may not have directly caused the problem, but it is they who now have to deal with the problem. If they take no action they risk severely damaging their Financial Services sector which is the life blood of the IOM economy. The very least they could do, having been living off the income generated by this sector for years, is to pay the interest on loans to the compensation scheme to enable it to rapidly compensate depositors. This would indicate a willingness to support its primary industry and help to salvage a modicum of confidence. What else are they doing to do to stop capital flying out of the door?

Flight of capital BETWEEN the banks

  • Anonymous
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  • Tue, 21/10/2008 - 11:35

I think there is more a a 'flight to quality' rather than 'flying out of the Island'
There are a number of Irish Banks in the Island that benefit from the Irish Government guarantee.
Additionally there are subsidiaries of the UK large clearers.
I think that, the lessons being learnt by all businesses and individuals is that with high rates can come a risk.

IOM taxpayers

  • Anonymous
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  • Tue, 21/10/2008 - 11:08

Here in Guernsey where Landsbanki have crashed one of our deputies has suggested that private deposits at least are covered 100% by the sale of assets and the government. His logic is that our States have been taking taxes for years and that this could be the only thing that keeps Guernsey's reputation afloat locally.

As around 30% of business was from local private depositors and another 30% from other private depositors (so not disimilar to KSF IOM) he fears that those who had money to spend but have lost it will simply stop spending anything and thus the building industrries etc will suffer.

The governments have been skimming the cream off for years so maybe they need to do this to save their necks then tackle the ongoing issues to make sure they do not reoccur.

Guernsey as an example of good practice ?!?

  • Anonymous
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  • Tue, 21/10/2008 - 11:13

in Guernsey there is no statutory protection though is there? IE No DCS.
If all of the assets can be used to meet the liability to depositors then no Government payment is necessary so I do not understand your point.
In the absence of any VAT receipts can in fact Guernsey afford to make any contribution?


  • Anonymous
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  • Tue, 21/10/2008 - 12:32

Guernsey is currently investigating the implementation of a DCS on a similar basis to the one in the IOM (ie bank funded). Having said that discussions commenced in 2002 and they still haven't done anything! Although Guernsey has reserves I doubt these would be large enough to cover the amounts in question.

Landsbanki customers will reportedly receive 30% of their deposits. However just like KSFIOM there are supposedly substantial assets such as property and bank loans in the UK as well as Iceland so why are the UK based organisations not remortgaging elsewhere or can the loans not be sold to pay the creditors now? We keep being told that these subsidiaries were liquid so are the UK holding back our cash to subsidise their economy like Iceland?

100% return is essential and even then it won't be enough to settle the publics nerves. Those smug individuals with Lloyds et al just don't see that if HBOS can go down the river overnight then so can their banks and that maybe they should be a bit more supportive and take some action.

Actually I am getting to the

  • Anonymous
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  • Tue, 21/10/2008 - 13:20

Actually I am getting to the point that I suggest foreclosure of loans from KSF IoM, to recover funds - how the F'ing hell can a borrower have more stability than the man who funded his purchase?