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Depositors in the collapsed Isle of Man subsidiary of Iceland's Kaupthing Bank today called on Chancellor George Osborne to respond to their pleas for financial help,
Some 11,000 islanders saved up to £840 million in the Manx Kaupthing Singer and Friedlander bank. In April, they wrote to the Treasury and the Isle of Man government with a proposal to create a joint loan trust to help depositors receive funds before the 2017 deadline when the bank's liquidator estimates it will make final payments.
Around 73% of returns from the liquidation of KSF (IoM) have already been paid out to savers, but Richard Carter, spokesman for the Kaupthing Singer and Friedlander Depositors' Action Group, said many depositors had put their pensions and funds from house purchases into the bank, and could not afford to wait another six years for the rest.
Final recovery from the liquidation is expected to be 98p in the pound, so Carter said paying that in advance via a loan trust was a small price for the UK and Manx governments to pay to enhance their reputations as financial centres.
"We're calling on the Government to give our proposal full consideration. Setting up the loan trust would be the moral thing to do."
Carter added: "This loan trust initiative is a low cost and efficient device that speeds up the return savings to needy pensioners and victims of regulatory incompetence. The IOM government, quite reasonably, say that responsibility for this case is shared with HMG on the mainland. For some reason, when HMG breathes down their neck they say 'don't worry, we will sort it out' and then fail to do so, claiming they cannot afford the resources. Westminster's Treasury Select Committee has pointed out that when you look at the undiluted facts behind this case, both governments bear responsibility and this is something that needs to be gripped."
Reader views (9)
Excuse me. Expats such as myself were told that we couldn't hold sterling in UK if we are not resident & were forced to keep that money offshore. Personally I sold my house to move to new Zealand was forced to put that money in the isle of man. I as many others in similar positions lost their whole lives in one day. To work for 20 years to build up a nest egg to have it taken away by the powers that be. The exact same bank in the UK was bailed out 100%. There is NO greed here.... NO tax dodging. Just real people - like you.
- Adam, New Zealand, 01/06/2011 10:47
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Why should the British taxpayer pay one penny to prop up the tax dodgers who use the Isle of Man?
- Simon Lewis, London, 31/05/2011 19:47
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£840 million, and only a proportion of it.
Yet again british savers are short changed, as in the disgraceful pensions cases, particularly the Equitable Life.
Yet the government can find plenty of cash for overseas so-called aid.
- Michael Corby, London UK, 31/05/2011 18:44
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The title ('islanders') is inaccurate, as are some of the comments. Many of "these people" are honest British citizens living and working abroad in a variety of jobs, often not highly paid and in difficult conditions, who are unable to open mainland UK accounts as a direct result of the anti-money-laundering policies of the UK government and thus forced to go offshore to maintain sterling accounts. They are neither greedy nor tax-evaders. The UK bears a large part of reponsibility for the collapse of KSFIOM after it put its sister bank in London in administration. The unfortunate depositors of KSFIOM are the victims here. They (not dodgy businessmen - and not the IOM government)are asking HMG to finally face up to that responsibility and to join with (not replace) the IOM in offering a helping hand to those who continue to suffer the fall out of multiple regulatory failures in both countries. Is it too much to ask for a helping hand? Not a bail-out, but a loan to enable those who continue to suffer to recover their funds sooner rather than later?
- Angela, France, 31/05/2011 14:26
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No.
And if they don't pay up we should repossess the island and make it work until every last penny is repaid.
- John Buckeridge, London, 31/05/2011 13:42
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Bit rich the IOM wanting the UK to bail them out. They have their own parliament let them sort it out.
- Clive, Nantwich UK, 31/05/2011 13:42
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YOu got greedy and paid the price. The IOM is not part of teh UK and is a tax haven for dogdy businessmen who ferret away funds for the UK tax man.
Why should we the UK tax payer bail you out? Increase your rate of taxation to pay for it. This just the limit umder no circumstances should we help these people out.
- Duncan Bailey, London, 31/05/2011 12:36
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The inaction of the UK government is prolonging their pain. I think the comment below is inaccurate.
"For some reason, when HMG breathes down their neck they say 'don't worry, we will sort it out' and then fail to do so, claiming they cannot afford the resources."
Let's remember that the reason why these funds are unavailable to the depositors is that the UK seized the assets of the Isle of Man subsidiary, using anti-terrorism laws. Why can't they hand this back to the rightful owners, in this case the claimants of the IOM arm of the failed bank?
Osborne, the ball is in your court not the IOM's.
- N, Chelsea, London, 31/05/2011 12:34
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The inaction of the UK government is prolonging their pain. I think the comment below is inaccurate.
"For some reason, when HMG breathes down their neck they say 'don't worry, we will sort it out' and then fail to do so, claiming they cannot afford the resources."
Let's remember that the reason why these funds are unavailable to the depositors is that the UK seized the assets of the Isle of Man subsidiary, using anti-terrorism laws. Why can't they hand this back to the rightful owners, in this case the claimants of the IOM arm of the failed bank?
Osborne, the ball is in your court not the IOM's.
- N, Chelsea, London, 31/05/2011 12:31
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