Response to Alan Bell statement in House of Keys 10 March 2009:

Response to Alan Bell statement in House of Keys 10 March 2009:

The Kaupthing Singer & Freidlander (Isle of Man) Depositors Action Group (KSFIOMDAG) strongly refutes the suggestion by Alan Bell, Treasury Minister made today in the House of Keys that depositors no longer speak with one voice.

In fact the opposite is the case since all depositors favour the approach recommended by the UK Prime Minister Gordon Brown at his Press Conference (1) : ‘we need a regulatory transformation so that people can feel that their savings and their deposits are safe…. That is why …changes that we make will have to apply to all jurisdictions round the world’.

Last week, 72 hours after news broke of the alleged Stanford fraud, the Eastern Caribbean Central Bank took control of the Bank of Antigua, a bank on a small island in the Caribbean, and guaranteed all retail deposits. 24 weeks after the provisional liquidation of KSFIOM, a bank on a small island in the Irish Sea, KSFIOM depositors have received no such equivalent guarantee. We believe this comparison speaks volumes.

It is the Isle of Man Government who are out of line in their thinking and approach. Just because a complex and incomplete Scheme of Arrangement is not supported by the majority of depositors does not mean that people are not unified or speaking with one voice. Depositors quite rightly believe that the Isle of Man Government should take responsibility for the apparent regulatory failures that led to the demise of KSFIOM.

The smokescreen being put out by the Isle of Man may fool some, but most can see the actions for what they are – a misguided attempt to avoid triggering an ineffective and seemingly unfunded Depositors Compensation Scheme.

We suggest that the Isle of Man Government should instead turn its attention to preserving the reputation of the island as a reputable financial centre – something only 100% return to KSFIOM depositors will achieve.

(1) 18 February 2009

KSFIOM DAG
ksfiompress(?)googlemail [dot] com

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