KSFIOMDAG 25 Sep 11: Don't bank on the Isle of Man - new website launched

Category: DAG Public News

A new website has been launched by a KSFIOM depositor and member of DAG:

 

Banking on the Isle of Man

Bank: “An organisation offering financial services, especially the safe keeping of customers' money until required…" Oxford English Dictionary

…banks, although not “core banks”, should be allowed to fail… John Aspden, Chief Executive Officer, FSC, Compliance Institute Conference, January 2009. (1) *

“We are not favouring 100 per cent cover. There is a view on the island that there is a responsibility on depositors. There is a bit of risk for everybody in life and they are no different.” Tony Brown, Chief Minister, Isle of Man. Financial Times, 16 November 2009 (2)

...

There is no "a bit of" risk when it comes to bank failures, your entire deposit disappears overnight. When a bank fails on the IOM your deposit is not returned until the liquidation process starts, even then it is returned in dribs and drabs.  ...

The aim of this website is to warn people who have a bank account on the Isle of Man (or who are contemplating opening one) about the dangers of banking there. The reasons are given in the words of the officials of financial regulator (FSC) and Government Ministers themselves.

On October the 9th 2008 the Isle of Man branch of Kaupthing Singer and Friedlander collapsed when hundreds of million pounds it had loaned to the UK branch was lost when KSF UK collapsed. This caused the Isle of Man branch to collapse as well taking the savings of approximately 11,000 depositors with it.

...

For more quotes, facts, comments & questions you may wish to ask about banking on the Isle of Man, visit the site here

 

Hits: 2505