Aspden gives evidence in Westminster

Posted 04/02/2009 - 13:01 by Hoping and coping

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2009-02-03 16

The chief executive of the Financial Supervision Commission has been questioned about the Kaupthing Singer and Friedlander affair.

John Aspden was in a group of Isle of Man representatives quizzed by a United Kingdom Treasury Select Committee on the UK banking crisis, and associated issues, at Westminster yesterday.

When asked why £550 million was transferred from KSF Isle of Man to the UK branch of the bank, Mr Aspden said the situation in Iceland posed a great deal of risk.

He said:

"The reason was that, as the regulatory body on the Isle of Man, in the early months of 2008, we were concerned about the country risk presented by the amount of deposits lent from the Isle of Man operation directly to Reykyavik.

"In the regulatory body we were discussing this in January and February and, as the evidence says, in March we came to the view that we didn't want to incurr any Icelandic risk."

Meanwhile, it seems there was some confusion on the UK Treasury committee yesterday on the location of the Isle of Man (play attached audio file):