DAG Press Release 20 Feb 2009: Depositors devastated by latest adjournment by IOM Court

Category: DAG Press Releases

KSFIOM - no longer a financial disaster but fast becoming a financial scandal

The KSFIOM Depositors Action Group (KSFIOMDAG) is devastated that the Deemster has decided to prolong their distress even longer now giving the Isle of Man Government (IOMG) until the 9th April to develop an alternative Scheme of Arrangement. Just 21 days ago he decided that the uncertain situation was not acceptable and gave the IOMG an extra 21 days to organise an adequate response for depositors.

They failed to deliver anything until 24 hours after the court's deadline and then the little they did deliver offered nothing of substance on which to base an informed decision. So why has the Deemster now decided that a further 60 days will allow the IOMG to satisfy depositors needs? What have they done to demonstrate that they deserve yet a further opportunity to delay, against the wishes of depositors.

It is clear that there are only two objectives behind the Scheme of Arrangement:

1. to avoid triggering the Depositors Compensation Scheme thus avoiding having to admit that a bank on the Isle of Man has failed and avoiding the collection of levies due from other banks on the island;

2. to avoid maintaining depositors rights to pursue third parties who may be deemed culpable in this matter: the UK Government, the Financial Services Authority, the Isle of Man Government and the Financial Supervision Commission. Regulatory failure is the root cause of the problems facing depositors yet it will have been 6 months before the IOM courts decide to do anything to recompense depositors.

In today's environment with Kaupthing depositors in all other jurisdictions receiving 100% compensation, the Isle of Man Government has to understand that this is the only route acceptable to all depositors caught up in what is fast developing into a financial scandal. We refuse to be political collateral to preserve the island's faltering reputation.

KSFIOMDAG will not be deterred. We will use this adjournment to work with our lawyers and appointed counsel and pursue our case against third parties to ensure that all regulatory failures at the highest levels are exposed.

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