330 Days on: Still no answers as KSFIOM depositors wait to be reunited with their money in full

330 Days on: Still no answers as KSFIOM depositors wait to be reunited with their money in full

PRESS RELEASE 3 September 2009

Spokeswoman for the KSFIOM Depositors Action Group says:
"If you deposited £100 in a reputable bank and one day you were told you couldn't have access to any of it and nearly a year later you could have just £25 of that hard earned money back - how would you feel? That is the situation that depositors with KSFIOM have had to come to terms with."

After nearly a year of anguish and hardship due in no small part to Isle of Man Treasury's (IOMT) attempt to force through a flawed alternative arrangement to avoid the liquidation of Kaupthing Singer & Friedlander Isle of Man, depositors will finally get to access a small amount of their money (24.8p in the £) on Friday 4 September 2009, some 330 days after this financial crisis began. At a time when the UK government is looking to improve any future payouts under the FCS from 6 weeks to less than 3, the Isle of Man is content with a system that has taken 44 weeks to come into affect. With devastating life changing consequences for depositors involved.

The Isle of Man is the only jurisdiction affected by the Kaupthing collapse not to have found a way to rescue depositors in full. IoMT is still not taking responsibility for the failures of its Financial Regulator, the FSC, that led to the demise of KSFIOM. No organsiation or individual has yet explained the events behind the transfer of over 50% of the bank's assets to KSFUK which:

• was against EU and UK banking regulations that stipulate a maximum of 25% of assets should be held in one place
• failed to ensure the assets were held in any form of protectorate or trust that would save them from exposure to Khf (parent bank) - concerns about which was apparently the reason for the transfer
• still permitted the directors of the bank to entice new and retain current customers as late as October 2008, on the basis of the Khf Parental Guarantee which has since been revealed to be worthless .
Even after the DCS is paid out there will be thousands still affected by this debacle. For many the damage is done.

KSFIOM DAG spokeswoman continues:
"It is too late now for the Isle of Man Treasury to blow its own trumpet - it has failed depositors and it continues to fail to address its Governance issues, which allows directors of a failed financial institution to continue as chief regulators. There needs to be some accountability and at the very least a truthful account of the events surrounding the transfers of assets to London - who did what, when and why?"

For further information go to www.ksfiomdepositors.org or contact KSFIOMPress(?)googlemail [dot] com

ENDS

Status: 
Released

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