The Paper Petition

The Paper Petition

THE FINAL PETITION

We the undersigned, depositors in Kaupthing Singer & Friedlander (IOM) Ltd, contend that the Governments of the United Kingdom, The Isle of Man and Iceland have acted irresponsibly, unfairly and in a discriminatory manner towards depositors in said bank in that:

  1. The UK Government’s actions in freezing Icelandic assets in the UK directly led to the failure and subsequent administration of Kaupthing Singer & Friedlander UK (KSF UK) which up to then had been a solvent and liquid entity. This entity held significant assets belonging to Kaupthing Singer & Friedlander Isle of Man (KSF IoM) in the form of an intercompany loan. The UK Government’s actions therefore prevented KSF IoM from accessing funds that were rightfully its own and, as a result, from discharging its obligations to depositors resulting in the bank’s license being suspended and a provisional liquidator being appointed.
  2. The UK Government has declared plans to ‘guarantee all savings’ whilst failing to do so in certain cases. UK taxpayer funds are being used to support numerous financial institutions on the UK mainland: however, those institutions offshore in Crown Dependencies are excluded. The result of this is that there are UK taxpayers, who have contributed to the pool of funds now being used to guarantee onshore savings, left without support from the Government they support financially through taxation.

  3. The Isle of Man is a Crown Dependency, with Her Majesty the Queen as Head of State and is part of the British Isles, yet British Citizens holding British passports, who banked with KSF IoM have been treated in a different and unfair manner to those banking with KSF UK.
  4. The UK Government and Her Majesty’s Revenue & Customs have used European Union laws to obtain records of British nationals who bank offshore for the purpose of collecting taxes. It is disappointing to depositors that the UK Government has distanced itself from any involvement in this time of crisis. If depositors can be taxed directly by the UK Government in the Isle of Man then surely they should be protected directly as well.
  5. The Isle of Man Government has failed to act in parallel with other governments around the world to protect the interests of depositors in its jurisdiction.
  6. The Isle of Man Government has failed to safeguard the Island’s reputation and credibility as a secure, safe jurisdiction for bank deposits.
  7. The Government of Iceland, having nationalised Kaupthing Hf, has failed in its duty to honour the parental guarantee issued by the bank to depositors in KSF IoM.
  8. The Government of Iceland has guaranteed 100% of all its own national depositors’ savings but has apparently chosen to exclude depositors in overseas branches and subsidiaries of Icelandic banks including KSF IoM. This is the equivalent of placing a ranking system on all unsecured creditors which, by law, are all ranked equally. A possible result of this is that KSF IoM funds are used to fund the bail out of Iceland’s domestic banking system whilst leaving KSF IoM depositors destitute.
  9. It appears that the Prime Minister of Iceland misled depositors in Kaupthing Hf, its subsidiaries (of which KSF IoM is one) and the international press, by stating that the bank was, to his knowledge, not in difficulties. The fact that the Prime Minister nationalised Kaupthing Hf the next day would strongly indicate otherwise.
    The above points lead us, as depositors in Kaupthing Singer & Friedlander Isle of Man, to the following conclusions:
    • The recent actions of both the UK and Icelandic governments have resulted in the loss of millions of pounds to depositors in KSF IoM.
    • It is the duty of the UK Government as both catalyst for our losses and as the government responsible for the foreign affairs of the Isle of Man to protect and guarantee our interests.
    • The Isle of Man Depositors Compensation Scheme is discriminatory as it, according to the island’s regulators, excludes small businesses from claiming compensation, resulting in 100% losses for those depositors.
    We, the undersigned depositors in Kaupthing Singer & Friedlander Isle of Man, therefore demand the following:
  10. That the Prime Minister confirms in a statement that UK Government is seeking the return of 100% of all deposits held within KSF IoM (even in the event that KSF IoM is wound up) and considers that to be the only satisfactory outcome.
  11. That the UK government requests the administrators of KSF UK release all assets belonging to KSF IoM in order that it may seek to resume its normal operations.
  12. That the Isle of Man Government, without undue delay, reinstates KSF IoM’s banking license to enable it to resume its normal operations.
  13. That the UK Government, in conjunction with the IoM Government, implements the same 100% guarantee for all depositors’ money in KSF IoM as has been afforded to other KSF depositors.
  14. That the Icelandic Government, as primary stakeholder and controller of Kaupthing Hf, acknowledges its duty to honour the parental guarantee given by Kaupthing Hf to all KSF IoM depositors.
  15. That the Icelandic Government ensures that any entity taking control of Kaupthing Hf or any new entity arising out of the assets of Kaupthing Hf is required to honour the original guarantee given to depositors of KSF IoM by Kaupthing Hf.

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