{"id":8,"date":"2011-10-23T02:38:38","date_gmt":"2011-10-23T02:38:38","guid":{"rendered":"http:\/\/192.168.1.14\/?page_id=8"},"modified":"2020-06-16T10:48:26","modified_gmt":"2020-06-16T10:48:26","slug":"banking-on-the-isle-of-man","status":"publish","type":"page","link":"https:\/\/iombankfailure.com\/iombf\/","title":{"rendered":"Banking on the Isle of Man"},"content":{"rendered":"

Bank: \u201cAn organisation offering financial services, especially the safe keeping of customers’ money until required\u2026” Oxford English Dictionary<\/strong><\/p>\n

\u2026banks, although not \u201ccore banks\u201d, should be allowed to fail\u2026 <\/em>John Aspden, Chief Executive Officer, FSC<\/abbr>, Compliance Institute Conference, January 2009. (1) *<\/p>\n

\u201cWe 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.\u201d<\/em> Tony Brown, Chief Minister, Isle of Man. Financial Times, 16 November 2009 (2)<\/p>\n

\u201cThere is only a small pool of people on the island on whom we can call, with the right professional background and professional experience. So the issue of conflicts of interest has been a issue going back several years”. <\/em>John Cashen, Deputy Chairman of the Financial Supervision Commission and Non Executive Director of KSFIOM<\/abbr>. Tynwald<\/abbr> Enquiry into the Collapse of KSFIOM<\/abbr>, 13th November 2009 (3)<\/p>\n

“It is apparent that our views are diametrically opposed with regard to the relative merits of your proposal for a Loan Trust. As previously advised The Isle of Man Treasury reached its decision after detailed and careful consideration and will not be progressing your proposal.”<\/em> Anne Craine, Minister for the Treasury, August 2011, in a letter to the KSFIOM<\/abbr> Depositors Action Group in a response to a low-cost proposal to rectify the situation depositors have found themselves in.<\/p>\n

\u201cAs far as the situation for the Isle of Man is concerned, we are accepting our responsibilities and endeavouring to rectify the situation.\u201d<\/em> Tony Brown, Chief Minister, Isle of Man, United Kingdom Treasury Select Committee on the Banking Crisis, 3rd February 2009. (4)<\/p>\n

<\/a>Comment<\/h3>\n

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<\/abbr> your deposit is not returned until the liquidation process starts, even then it is returned in dribs and drabs. See also Depositors Compensation Scheme<\/a> and Time Line<\/a>.<\/p>\n

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 the financial regulator (FSC<\/abbr>), Government Ministers and other official sources.<\/p>\n

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<\/abbr> branch was lost when KSF UK<\/abbr> collapsed. This caused the Isle of Man branch to collapse as well, taking the savings of approximately 11,000 depositors with it.<\/p>\n

<\/a>Return timeline since October 2008<\/h4>\n

 <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0% of Deposit Returned\u00a0\u00a0 <\/strong><\/td>\nTime Taken
\n<\/strong><\/td>\n<\/tr>\n
\u00a024.8<\/td>\n\u00a011 months<\/td>\n<\/tr>\n
\u00a015.2<\/td>\n\u00a014 months<\/td>\n<\/tr>\n
\u00a011.1<\/td>\n\u00a021 months<\/td>\n<\/tr>\n
\u00a010.1<\/td>\n\u00a02 years 2 months<\/td>\n<\/tr>\n
\u00a012.5<\/td>\n\u00a02 years 6 months<\/td>\n<\/tr>\n
\u00a0\u00a0 9.6<\/td>\n\u00a03 years 1 month<\/td>\n<\/tr>\n
\u00a0\u00a0 7.8<\/td>\n\u00a03 years 8 months<\/td>\n<\/tr>\n
\u00a0\u00a0 4.8<\/td>\n\u00a04 years 9 months<\/td>\n<\/tr>\n
\u00a0\u00a0 2.2<\/td>\n5 years 11 months<\/td>\n<\/tr>\n
\u00a0\u00a0 2.0<\/td>\n6 years 2 months<\/td>\n<\/tr>\n
Final payment of outstanding interest<\/td>\n11 years 5 months<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

“Given the higher speed of return, the expectation of about 97% rate of recovery and the comparatively low number of people who remain to be paid out in full, we have come to the conclusion that paying out a portion of the remaining amount outstanding would now achieve little.”<\/em> Tynwald<\/abbr> Select Committee on KSFIOM<\/abbr> Final Report July 2011(Conclusion 72) (4)<\/p>\n

The “comparatively low” number of people owned 75% of the amount deposited and the final payout was expected to be made in 2017 but was actually paid in 2020.<\/p>\n

Many FSC<\/abbr> commissioners have quite a few directorships as well, in fact of the 8 commissioners listed 7 of them have over 60 directorships between them! You can see them all here: http:\/\/www.gov.im\/fsc\/about\/conflicts\/current_directorships.xml<\/a> You have to wonder how much time they can devote to their regulatory duties.<\/p>\n

<\/a>Questions<\/h3>\n

You might want to ask yourself.<\/p>\n