Rt Hon Jack Straw MP

Lord Chancellor and Secretary of State for Justice
Ministry of Justice
102 Petty France
By e-mail

4 April 2009

Dear Mr Straw

Kaupthing Singer & Friedlander (Isle of Man)

Further to our communication of 27 March, the House of Commons Treasury Select Committee has now published its report into the impact of the failure of Icelandic banks. In relation to the collapse of Kaupthing Singer & Friedlander (Isle of Man) Limited, the Committee has supported depositors’ calls for the UK and Isle of Man governments to work together to find a solution. The Treasury Committee has also supported our arguments concluding that:

the collapse of KSFIoM “was caused, in part, by steps taken by the UK Government to transfer deposits from the KSF UK branch to ING.”

“the majority of those affected are not sophisticated, investors of high net worth who are somehow insulated from the losses they have incurred; and

many people were “forced to deposit their money offshore, outside the protection of the Financial Services Authority, and the Financial Services Compensation Scheme, as a direct result of the way in which Financial Services Authority regulations were interpreted in the UK”
It concludes by “strongly urging the UK authorities to work with those of the Isle of Man and Guernsey to resolve these issues.”

Now that the independent Treasury Committee has reported, we would again ask you to urgently ensure that the UK and Isle of Man Governments work together to deliver 100% return of money for those affected.

We remain ready to offer any assistance we can to ensure this happens. We have written in similar terms to Ian Pearson, Economic Secretary to the Treasury. Given the urgency of the matter, we would be most grateful for an early reply.

Yours sincerely

Kaupthing Singer & Friedlander Depositors Action Group (KSFIOMDAG)


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