Reply to Manx Herald Editorial: "Has the UK really 'stolen' our money’?"

Strategy & Tactics -- Keeping up the pressure on the IoM Treasury

My latest letter to the Editor in response to:

Your editorial was very perceptive. I personally don't believe that the KSFIOM debacle was part of a conspiracy dreamt up by Alistair Darling and Co. I believe the substantial Kaupthing IoM funds were put into Kaupthing UK with the notional idea of preventing the Iceland Government being able to get its hands on the money, it being common knowledge to 'insiders' that things were going pear-shaped in Iceland's economy prior to october 2008.

The fact is the size of the money upstreamed to Kaupthing UK exceeded the regulatory terms of such a transfer. Neither the FSA nor the FSC should have allowed this to happen. Which one is the guilty party for this serious regulatory failure? Both the FSA & the FSC plead "not me!"
In my book they colaborated together so they are both guilty. Only a public enquiry will be able to apportion the relative degree of blame. I think the larger portion of the blame rests with the FSA because it did not follow the official Memorandum of Understanding under which the two agencies agreed to operate in their dealings with each other. John Aspen told the Treasury Select Committee that in effect he was hoodwinked by his opposite number in the FSA.

The depositors are in a position of having been legally robbed of their money and that money is frozen by Court Order until such time as Iceland has repayed the debt incurred by the UK Treasury in underwriting 100% depositors' savings in Icesave & landsbanki.

The KSFIOM depositors are caught in the crossfire of this fiasco. It's as though a thief had broken into your house & robbed you of everything, telling you that you could not have it back until another party paid them money that was owed them!

The UK Prime Minister says the IoM Government should vouchsafe the KSFIOM depositors' savings but the IoM Government refuses to do what every other European country has done in respect of their failing banks. Sadly the IoM is going to pay a heavy price for not offering this assurance to people who deposit in any of its banks. Only a fool would put their money on deposit in the IoM where the word TRUST no longer has any meaning, and there is just a compensation scheme that is only there in legislative terms, done in the unlikely event that it would ever have to be invoked.

Right now the IoM Treasury is hell bent to the tune of £1,000,000 in trying to stop the DCS being invoked in the KSFIOM fiasco, believing that a Scheme of Arrangement would be cosmetically less harmful to the image of the IoM as a good place to put your money. Unless the IoM Government finds the means to repy depositors' 100% of their savings the writing on the wall for the IoM rwill get so large that the wall itself will collapse!


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