Warning to IOM ignored in October - FSA Bosses face grilling

Posted 25/02/2009 - 17:47 by Anonymous

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2009-02-25 (All day)

In this news item from Times Online, the following point is made about there being a memorandum of understanding, or tip-off, between UK and Isle of Man but in October it was ignored...

"In further questions for Lord Turner and Mr Sants, regulators on the Isle of Man have pointed the finger at the FSA over the transfer of up to £500 million from the local subsidiary of Kaupthing Singer & Friedlander, to London shortly before the Icelandic banking crisis took hold.

These assets were left frozen last October when Gordon Brown pushed several British subsidiaries of Icelandic banks into administration. Regulators say they were acting on FSA advice.

They claim that a memorandum of understanding between regulators, which would normally have led to the Isle of Man being tipped off about the UK Government's planned actions, was ignored. "