Government The Inquiry Into Collapse Of Kaupthing Iom

[Sebrof]

Has bellyup installed version 3.0 of his OS and upped his game, or is 007Pimpel (sic) a brand new "contributor"?

 

Pimpernel has a surer grasp of the English language, so I would wager he is a different person.

 

S

[pongo]

This is just part of the damning findings of the UK Treasury Select Committee

 

Boo. Hiss. Google !

 

This seems to be mostly quotes from the written evidence submitted to the committee. Quite different from the findings. Anyone can submit anything.

[007Pimpernel]

the government is the only one in Europe not to protect 100% the savings in a bank that failed.

Lie.

 

Guernsey has refused even to backdate their compensation scheme and went straight for liquidation.

Not a lie .... for clarification I meant the European Union of which the Crown Dependencies are not members.

[007Pimpernel]

I ask again, which banking regulations were broken?

 

DIRECTIVE 200/12/EC of the European Parliament & Council, relating to the takeup & pursuit of the business of credit institutions

[Nkon]

I find myself having to agree with most of the comments made on this thread, mainly because as I have already said it’s very difficult to understand the detail. But having given this a bit more thought and digging I have tried to put the whole sorry mess into a perspective I understand, I have come to the following conclusion:

 

While I feel sorry for those that have lost money, this is no different to the sympathy I feel for the millions of ordinary investors in pension funds who now find that their savings have been reduced in value. This as we are all aware is the result of the mismanagement of funds and a lack of regulation rife throughout the British financial / banking sectors.

 

In the Isle of Man we have a finance sector which accounts for 37% of GDP. The true value of this is much higher when you take into account that other sectors are highly dependent on this sectors continued success. The government keep trying to convince us we live in a diverse economy; a simple model shows that a small fall in the finance sectors performance will have a dramatic effect on the overall economy (hardly diverse).

 

What we have to accept as a nation is that any serious damage to the finance sector will result in considerable hardships for everyone on this island; this could last a long time until new industries are found to fill the void. (Which explains why the Treasury is doing all it can to prevent this happening)

 

I am no fan of the current government or the present systems we have in place, but at present that is all we have. We must all accept some blame for the current situation, accept it needs to be improved and finally ensure at the next election we vote for individuals who can and will make a difference (that is the only positive action open for most of us).

 

We should all realise by now that the KFS affair has been handled badly and I for one do not need reminding, but we have to accept even if a bit unwillingly that we are now in a phase of damage limitation and adding to the fire in no way helps the Isle of Man.

 

Put simply, I just want a future for my kids on the Isle of Man.

[WTF]

I'm genuinely pleased for you.

 

 

 

Move along, nothing to see here.

 

 

not correct, lots to see, all bad, we just don't want ANYONE looking.

[Sebrof]

We must all accept some blame for the current situation, accept it needs to be improved and finally ensure at the next election we vote for individuals who can and will make a difference (that is the only positive action open for most of us).

 

I think it is far too early to say that, prior to the collapse, the IOM handled anything badly. The FSC worked closely with the FSA, and money was brought back from Iceland. It was taken to the UK because it could be used in the UK - KSFUK had a thriving and sound business (as far as we are aware at the moment), and nobody foresaw that Darling would leap in with both feet and cause it's collapse.

 

The SoA would not seem to have been thought through very well, but that is a minor matter in the scheme of things.

 

It's very easy to lay blame with the benefit of hindsight, but what do you actually do when a bank seems to be in difficulties? If you say so publicly, there will be a run, and it will collapse. The best solution, in my view, is to nationalise it. It would certainly not be appropriate to guarantee the deposits of a foreign bank over which you have little control.

 

So, again with the benefit of hindsight, I think Darling should have co-ordinated a nationalision KSFUK and KSFIOM. There would no doubt have been some loss - relating to monies deposited in Iceland - but it would have been a far cleaner and more cost-effective route than the one he took.

 

The poor old IOM were just pawns in all this.

 

S

 

PS: I notice Pimpernel has still not answered my question.

[Sebrof]

the government is the only one in Europe not to protect 100% the savings in a bank that failed.

Lie.

 

Guernsey has refused even to backdate their compensation scheme and went straight for liquidation.

Not a lie .... for clarification I meant the European Union of which the Crown Dependencies are not members.

 

And as the IOM is also a crown dependency, it is also not in the EU. So your statement makes no sense.

 

S

[pongo]

KSFUK had a thriving and sound business (as far as we are aware at the moment), and nobody foresaw that Darling would leap in with both feet and cause it's collapse.

 

There you again repeating that weird slant on the story. The UK Treasury took control of the bank because the FSA advised them that the UK subsidiary was "no longer in a position to meet its obligations to depositors".

 

Don't you believe that ?

 

Singer & Friedlander plunges into administration - Times Online

[Sebrof]

KSFUK had a thriving and sound business (as far as we are aware at the moment), and nobody foresaw that Darling would leap in with both feet and cause it's collapse.

 

There you again repeating that weird slant on the story. The UK Treasury took control of the bank because the FSA advised them that the UK subsidiary was "no longer in a position to meet its obligations to depositors".

 

Don't you believe that ?

 

Singer & Friedlander plunges into administration - Times Online

 

Only because the money was in Iceland.

 

S

 

PS Your link doesn't work.

[pongo]

Only because the money was in Iceland.

 

Being poured into a hole. What a good thing for everyone that someone stepped in.

 

I'm unclear why so many people on the IOM seem so keen to try to blame the UK for shutting down a flaky bank. As if there was anything else that could have been done. I feel sorry for the KSFIOM depositors and hope they get a good outcome. And I definitely want a good outcome for the IOM. But constantly trying to find different ways to somehow blame the UK just seems a bit thick.

 

Perhaps no one is to blame. What a novel concept eh? Perhaps it just all went wrong.

 

PS - link seems fine. Maybe your network.

[bluemonday]

Links fine.

[Sebrof]

Only because the money was in Iceland.

 

Being poured into a hole. What a good thing for everyone that someone stepped in.

 

I'm unclear why so many people on the IOM seem so keen to try to blame the UK for shutting down a flaky bank. As if there was anything else that could have been done. I feel sorry for the KSFIOM depositors and hope they get a good outcome. And I definitely want a good outcome for the IOM. But constantly trying to find different ways to somehow blame the UK just seems a bit thick.

 

Perhaps no one is to blame. What a novel concept eh? Perhaps it just all went wrong.

 

PS - link seems fine. Maybe your network.

 

God knows what it is. I get a 404 error even if I click on the story within the Times Online site.

 

S

[Sebrof]

I'm unclear why so many people on the IOM seem so keen to try to blame the UK for shutting down a flaky bank.

 

Perhaps because by doing so the UK brought down KSFIOM? And I am not yet convinced that KSFUK was fundamentally flakey of itself. It was its parent that was in trouble, as far as I can see. But I obviously don't know any more about it than is in the public domain.

 

S

[007Pimpernel]

I find myself having to agree with most of the comments made on this thread, mainly because as I have already said it’s very difficult to understand the detail. But having given this a bit more thought and digging I have tried to put the whole sorry mess into a perspective I understand, I have come to the following conclusion:

 

While I feel sorry for those that have lost money, this is no different to the sympathy I feel for the millions of ordinary investors in pension funds who now find that their savings have been reduced in value. This as we are all aware is the result of the mismanagement of funds and a lack of regulation rife throughout the British financial / banking sectors.

 

In the Isle of Man we have a finance sector which accounts for 37% of GDP. The true value of this is much higher when you take into account that other sectors are highly dependent on this sectors continued success. The government keep trying to convince us we live in a diverse economy; a simple model shows that a small fall in the finance sectors performance will have a dramatic effect on the overall economy (hardly diverse).

 

What we have to accept as a nation is that any serious damage to the finance sector will result in considerable hardships for everyone on this island; this could last a long time until new industries are found to fill the void. (Which explains why the Treasury is doing all it can to prevent this happening)

 

I am no fan of the current government or the present systems we have in place, but at present that is all we have. We must all accept some blame for the current situation, accept it needs to be improved and finally ensure at the next election we vote for individuals who can and will make a difference (that is the only positive action open for most of us).

 

We should all realise by now that the KFS affair has been handled badly and I for one do not need reminding, but we have to accept even if a bit unwillingly that we are now in a phase of damage limitation and adding to the fire in no way helps the Isle of Man.

 

Put simply, I just want a future for my kids on the Isle of Man.

It is so refreshing to read another post here that is pragmatic & unblinking. I get the impression that some folk here like to shoot the messenger because they don't like the message! I understand tax is a big issue on the IoM. Many have come to live on the island to escape higher taxation elsewhere, and the thought of taxes going up - or taxes being misspent - makes people jittery.

 

The government is very sensitive about this issue, so it is small wonder that there will be concern on the island to learn that the Treasury has run up a £million bill on an unacceptable SoA. Relief for the taxpayer to know that hard up depositors will be expected to pay this bill when they had nothing to do with it! THAT is yet another example of injustice on the IoM. I tell you, there's going to be one hell of a rumpus from the depositors if the government gets away with this nasty trick! My guess is that the nepotism in the IoM is so rampant that the court will bow to the behind the scenes pressure to let the Treasury have the depositors' heads on a plate!

 

The court hearing is ALL DAY next Tuesday. Depositors bankrupted by the FSC & directors are having to beg from friends to be able to hire a lawyer to defend themselves against this outrageous action! Theres a lot of Manx people who have lost money in Kaupthing so I hope they don't lay down & let 'them' kick them in the face.