Our Stories

These are the stories of real people who face financial ruin, or at best considerable hardship, as a result of the collapse of Kaupthing, Singer and Friedlander (IoM). These people deposited money with a reputable and highly rated bank for safe keeping and to earn interest. They are not stock market investors who know they can lose when they invest but prudent savers. Most (86%) are British citizens and most (77%) are over 45. 64% of depositors have more than £50,000 at risk. Some of the stories are harrowing; some demonstrate the British "stiff upper lip". Many are understandably angry. Please read them. We welcome your support.

£115,000 lost

Just when you think life cannot get worse after the death of my husband last year leaving me with three school age children I now face the fact that the money which I received from a crictical illness policy as a result of his death and invested for us to live on is now likely to be lost. How can banks do this to their depositors?

This might cheer you up a bit

My wife and I have about 26.5 thousand pounds in an offshore bond wrapper with Royal Skandia, which is in turn invested in KSF (IoM). We live in Spain. This is of course very upsetting...on the first couple of days it seemed like the end of the world as it is most of our savings.

I was on the phone moaning to my mum back in Liverpool about how I had lost all our money in Iceland. She asked what I meant, I said, "You know, it's all invested in Iceland." She said, "How come you did that, it's not a very good shop anyway!" She thought I meant the frozen food shop! I had to laugh.

Later I was thinking...The funny thing is, even I didn't know it was in Iceland because on my statement is only ever said 'K & S IoM' so I was watching the news story about a bank collapsing and feeling sorry for everyone for some time before I realised it was my money too!

If we ever get our money back, we will be very careful about where we put it in future. You just tend to trust these institutions don't you? Well never again. I used to laugh at old people who said they 'don't trust banks'. Well who's laughing now?

I have lost about £7500 which

I have lost about £7500 which is not much to many but a lot to me. I took early retirement and had a lump sum and invested some of it in Kaupthing Edge. I still have some money in other banks but this loss has forced me to increase my hours at a part time job which supplements my pension so I can give my children and grand children Xmas goodies and pay for a trip to the USA next year to meet some friends. The money lost was also a cushion for household repairs.

I have nothing but total disgust for the Manx Government in this affair. Dont tell me they did not have warning. Their big campaign for the Island is "Freedom to flourish"! What a complete and utter damned joke.

our story

I am a medical graduate of fifty years, working in one of the Gulf countries for thirty years.. My wife has also been working for almost the same number of years with me. I am now 73 years old, still working, and my wife and myself were planning to retire this year, buy a house and be next to our children and grandchildren to help them financially and socially.

All our savings were placed with Derbyshire and later transferred . We placed a trust in Kaupthing IOM with its parental guarantee. We do not live a luxurious life and wanted only a secure and worry free investment. We were hoping that this amount would provide us with a house and a safe retirement considering we do not have a pension, life insurance or medical insurance.

We are devastated and do not know what to do. Fifty years of my work as a professional has gone up in smoke in a few days. I had to ask my children to forgive me as I will be unable to help them and their children with their lives, and have dashed their dreams. I am unable to continue working, what for??!! The problem is that I am physically healthy, and may live for a further number of years, although there is no doubt that this incident is already adversely affecting
my physical and mental wellbeing.
We have been robbed and no country in the world should have the right to deny us all a satisfactory outcome.
We are more than grateful to all those who are fighting our cause and for setting up the site
May god Bless and keep you

Our story...

My apologies for not registering sooner, and my thanks to all those who have contributed to this site, and to all those who are speaking out and acting on behalf of all those of us who have deposits with Kaupthing. I have derived a great deal of comfort from this site over the past week, and am heartened by the fact that our plight is being noticed. I thought the You and Yours treatment was excellent, and sensitive, and the interviewees on the programme superb. I have also been very grateful for the Channel 4 and BBC News bulletins, and to the excellent interviewees on those programmes. I am heartened too by the news coming out (all of which has been mentioned on this site) – particularly the October 15th news that the UK will act for the Isle of Man in discussions with Iceland on Kaupthing Bank’s Guarantee.

Our situation is very similar to that of others. Simply put, we have lost all our money – amounting to just under £500,000 – and have no home. This sum includes our life savings and the proceeds from the recent sale of our house in the UK. It would, we had hoped, have been just sufficient to allow us to finance the purchase of a modest home for our retirement and to finance our future. We have no other savings whatsoever.

Like many others, my husband and I are Brits who have lived and worked overseas for most of the past thirty-four years. We are (or were) about to retire (at 60/62) very shortly. Our financial aim over these years has been to try to ensure that we can be self-sufficient from the point of retirement onwards.

We have through all these years saved very cautiously, with the guidance of British financial advisors. Over this year we have started to prepare for our retirement. Earlier this year we managed to sell our UK home. Needing a safe place to deposit the funds, and having gained advice from our financial advisor, we opened an account with KSF Isle of Man through its online, Kaupthing Edge (Isle of Man), arm. We understood that this bank was extremely sound, that all the relevant ratings were excellent, and that we could bank there with confidence. Particularly reassuring, of course, was the parental guarantee.

We also, subsequently, and very recently, moved our savings to this bank, again on the advice of our advisor. These comprised savings with Bradford & Bingley (Isle of Man) – moved because we were anxious about their situation – and savings previously invested in International Bonds with UK financial companies – because there had been hardly any growth at all over the previous year, and we needed growth and not loss...

I am disturbed, though, sadly, not surprised, by the vindictiveness of some online commentators (not on this site) towards those of us who have chosen to, or who have had to, live and work overseas. We are ordinary people who have tried to make the best life we could for ourselves and our children. Like others, we are legally non-resident in the UK for taxation purposes – we are taxed on our income by the country in which we live, and we have declared, and paid UK tax on, our UK income - rental income whilst overseas, and on interest on all our savings during the periods we were living in the UK. We have also maintained a British bank current account (started when I was sixteen…), and thus pay tax on any interest accrued.

At the moment I am holding on to the thought that we should and must get our money back. Even if we both continue to work as long as we are able, and even if we are given the compensation amount, we cannot make up this loss, and I just cannot see how we can support ourselves through to the end of our lives, let alone put a roof over our heads…

I have e-mailed a letter to our MP (where our UK home was situated), asking for attention to be drawn to, and action to be taken on behalf of, all those affected by this situation, and have been told that he is watching the banking situation very closely and that he and his colleagues are lobbying to save British offshore accounts. I am now in the process of writing letters to send to many of the other contacts suggested on this site.

I do think that this is our best course at present – to make ourselves visible and have our voices heard. My thanks again to everyone out there who is trying to gain action and justice for us.

Meanwhile, I am hoping that the Liquidator Provisional will find a way for all of us to retrieve what is ours…

Sympathise with your loss

I sympathise with your loss, hoping and coping. I, too, moved money from the B and B around 3/4 weeks ago fearing for their solvency. I, too, was advised to move it largely through the advice of a UK based financial adviser (he send me a factsheet with Kaupthing and Landsbanki as prime recommendations for offshore savings). If we get less that total recompense of our losses the financial ombudsman in the UK will be hearing about the said financial adviser's "advice" and hopefully he will be making up the difference. I suggest that you consider a similar course of action if the worst comes to the worst.

TAX AVOIDANCE, (Blame or Excuse?????)

[My circumstances:]
As written in other forums I had 5 transfers that took place on Monday Oct 6. The first two were to the UK, CHAPS and BACS. The next was a £GBP CHAPS to HSBC Douglas, that cleared. Lastly there were two foreign USD transfers by swift to HK & USA accounts, that both cleared vis Deutsch Bank, New York. The UK transfers obviously did not arrive, hence my sleepless nights and contributions here and elsewhere.

Regardless of what is mentioned the Bankers Almanac shows funds released from KSF (IoM) MT103 messages to firstly through Singer and Friedlander UK. UK banks traces all previous successful deposits with HSBC and First Direct show all CHAPS & BACS coming through NATWEST London. NatWest gets the message from KSF (UK). At any rate it seem to have good legal grounds for rights to these funds since they were made when the bank was solvent and made with clear funds. The electronic paper trail will show this. Seems appropriate a court order to the Liquidators would require this evidence from KSF (IoM) and for them to put a full trace on it. Then further action could be taken with Kaupthing, Singer and Friedlander UK, and RBS or NATWEST who handle their forward credits. These transfers ownership should be fairly and legally determined by the courts and seems pretty straight forward to do so, or get that process started, before these funds are lumped in with rest and allocated in blanket ruling to lost out UK depositors and councils, Iceland or sent back to the IoM.

For example I am UK resident on work assignment from the USA. I will return. I kept KSF (IoM) accounts for USD and Sterling. I send allocated funds from the USA to KSF (IoM) to convert to Sterling mostly to pay for my children’s education in UK, where UK earnings do not cover this. The UK is not my permanent home, but I pay alot of tax to HMRC for every penny earned here, and I also have to report all income to the US Treasury. However there is an exemption on earned income for the first $99,000, but only for earned income wages, and salary, not for unearned income like bank interest, or capital gains, etc.

USA Citizens are required to report all foreign bank accounts held annually to US Treasury or face a $10,000 fine per account discovered and a loss of up to 50% of the account value, under civil law, not criminal. My IoM deposit were from taxed income in the UK for my return to the USA. UK deposits have tax 20% automatically deducted and the USA IRS taxes on the interest that is paid. In the meantime any deposit returned to the UK I am required to pay HMRC in the UK 40% on any foreign earned interest. Incoming deposits from IOM and CI and watched and flagged as part of HMRC daily operations. How can this be considered Tax avoidance?

With all the Americans working in the UK in the financial markets and other industries we all face this issue of double taxation and serious complicated accounting tasks to live here. It’s part of the increased price to do so, and we accept that. To now my deposit of 2 years UK& USA taxed earnings disappear or seized due to action of Alistair. Darling and HM Treasury remain unaddressed by either IOM(UK) or Downing Street, is shocking to say the least.


The biggest emotion I am feeling at the moment is anger. I am angry at the Derbyshire for wittingly transferring funds to an organisation they knew was having problems. I am angry at KSF for collapsing (although there is a wider more complicated element here, something I do not fully understand), but above all I am angry with the financial people for allowing it to happen in the first place. I expect the directors and many senior financiers of the companies will still get their hefty bonuses, so maybe we can sue them personally for any money we loose.

The only thing I have in my mind now is that I want my hundred grand back, NOW.

Mike Steel

Moving my savings from island today

I am a British expat living in the USA who two years ago moved overseas and sold my most of my business and home in the UK due to ill-health . I deposited a large part of my savings in KSF(IOM) prior to buying a home here and now stand to lose £960 K . As you can imagine ( and tell from the time of this post ) I have not had much sleep in the last two weeks . A week after the bank collapse the Manx authorities have failed to give me any confirmation that my life savings will be returned quickly and in full and the UK government has failed to confirm that they will compensate us for a bank failure that they themselves caused . I have therefore today given instructions that my remaining savings on the island above the present compensation limit be returned at once to the mainland to my only remaining account in the UK that I was able to keep open with an overseas address . This account is a regular current account paying NO interest but I feel I have greater protection there than in the IOM at present . My dreams like many of you here have already been ruined it seems but I cannot now afford to allow the authorities failure to act quickly to completely destroy my life .

Yet another story

A pensioner, saved diligently throughout working life - over 40 years towards buffering the state pension. I was saving with the Derbyshire, I wasn't chasing the higher interest rates offered by KSF. Now it's all gone and I haven't the time to start over. More depressing is the fact that when BCCI went down in Gibraltar in 1991, payments are still being settled 18 years later. Admittedly this was a more complicated case. I hope that compensation is dealt with more quickly than this.

us too

Ordinary family, teachers, one full-time, one part time, early 50s, struggling to educate kids and have a modest standard of living. We have lost £70,000 - all our savings - money set aside for Uni fees and a small extension. Builders need paying - they're half-way through. I am trying not to let this matter - it's only money, but I feel violated and vulnerable. We live in Jersey - they're being incredibly smug and saying it would never happen here...!

How lucky I feel now, what a lucky escape

I have moved from the UK to the US , I had my saving to get me by for the first few months in KSF but now they are unavailable. Luckily I have managed to find a job this week, a lot faster than I thought it would take in the current economic climate. Unfortunately or maybe fortunately I have been unable to sell my house in the UK. My plans were to sell the house and deposit the money in KSF until we found a suitable place in the US. So in someways thank goodness for the housing crash, unfortunately houses keep going down in the UK whereas they seem to have stabilized here and the exchange rate seems to get worse almost daily as more and more banks are bailed out

where's my interest gone

I opened an account offering 7.1% instant access at the end of July. Interest on my £35,000 was supposed to be paid into my UK current account. But after my initial welcome letter I've received nothing. Even though my passwork and user id was correct I could not access the website and was told on the phone there was a technical glitch. Today I panicked after reading the Daily Express which said that IOM savers were not covered by the UK FSA scheme and were at the mercy of the liquidators. Could anyone clarify exactly what compensation scheme is in force as I have read various conflicting stories.

Frustrated mum of young family

Working as an ecologist in Africa for a conservation agency, a mom of two young children (4 and 6, girls). I opened with KSF IOM because I receive USD (regional annually renewable contract) and had to transfer some money for my private pension fund to Germany and some funds down here to Africa for living expenses (schools for the girls, rental, food, etc). Trying to find a USD account in Germany was impossible, so a friend suggested S&F IOM, for the past 10 years I have had a simple MMCA and received my monthly salary there, with a tiny bit of interest, that any other bank pays, as I never managed to save the lot for higher rates. Some of us they have lost their life's savings, I have lost my everyday life's money!

Now I face outstanding school fee's for my girls, flat rental, as well as other expenses. As far as I can tell, Africa's banks are your safest bet now! Their relative isolation from the world's markets has saved them from the global financial disaster. I hope. Still. If anyone wants my story via internet or any other way out into the world, I am here !

Shocked, panicked, upset then angry-a rollacoaster of emotions

My husband and I were on holiday in Thailand when it happened. We have since returned prematurely to the UK as we were so distraught.
We sold our holiday business in October 07 because we thought the UK was heading for economic disaster and to help support my elderly mother in looking after my father who has alzheimer's. We spread the proceeds of the sale and our hard earned savings in both UK banks/building societies and the Derbyshire IOM in the form of 2x £90k 1 year bonds (one each). We were not overly concerned when KSF took over as they appeared highly capitalised, the parental guarantee assured us. We became a little concerned with the Icelandic situation as we got into 2008 but never envisaged this.
We pay UK taxes, the interest from these bonds would have been taxed by the UK, we also have a substantial capital gains tax from the sale of our business to pay in the new year. We feel betrayed at what appears a lack of commitment and support from the UK government. We only hope the UK government do the right thing and release the KSF IOM assets within the KSF UK operation.
On reading that many of you have your life savings at stake, we have a sense of perspective and our thoughts are with you all. A positive outcome must come about, because this will not go away and damage all governments concerned. To top it all I have just heard my brother has been diagnosed with bladder cancer and is being operated on today.

Wider TV Audience

I have not made a post yet as I have been too stunned ,shocked and devastated like everyone and unable to really function or think straight . I have woken up this morning with positive anger, I want to fight and get our story out to as many people as possible the general public people like us that dont realise the situation apart from channel 4 and the odd local news there has been nothing . Has anyone thought of contacting someone from say GMTV who are always on the side of the underdog it would also reach such a huge audience . I would suggest someone to represent us possibly a pensioner or young family . Anyone though that could handle a TV interview. Please somebody from the London area get in touch with the channel 4 reporter, if its your identity you are worried about please think of everyone and just get your story told. We only have such a limited time slot before this becomes old news and if we loose everything you will regret not having done something positive.

Return to the Uk in the offing

Like so many others on this site I had my entire life savings in KSF IOM. Should this situation not resolve itself satisfactorily in the very near future, then I (once again like so many others on this site) will be left with no other alternative than returning to the UK and asking for state handouts, accommodation etc.


As UK citizens, living and working overseas temporarily, we are stunned by the situation in the IOM regarding KSF. The apparent connections between KSF UK and KSF IOM are obviously simply tenuous or non-existent.
We are UK citizens who will shortly return to UK. With our savings gone, what will we be able to contribute to the UK economy and how much support will we actually need? It is disturbing to think that some people think of us as "rich" or "different" but we are in the main simply normal UK cits who, by virtue of a temporary working situation, are outside the UK and therefore unable to use savings accounts/financial institutions in the same way that we did before. Why are we stuck like this ? We are at the end of the day, British passport holders and citizens. Why are our rights any less than those living in UK? Why any less worth fighting for?
Our losses are UKs losses too. More likely to return early and benefit from state help now.


My life savings of GBP140,000 sat in this bank. Money I earned honestly from my hard work. I was brought up to believe that if you can't afford it, you don't buy it. This is how I live my life. I don't srounge off the state for a free house, free furniture, free cars, free education, etc. and this is how I am repaid?

Some people have an image that offshore means "super rich" and "tax evasion". This is simply not true.

Brown better remember that expats still have the right to vote. Fingers crossed he and his champagne socialist entourage will be gone very, very soon.

Anyone know of a country I become an asylum seeker in that offers the same high quality fringe benefits as the UK system ???? Such as a 7 bedroom mansion worth GBP 1,500,000.00 to live in for free - and I would also expect a plasma TV thrown in for good measure. (As per International Express concerning an Afghan asylum seeker living in Acton, London)

Cannot believe what the UK has become.

Today I found out that my partner of 17 years has a brain tumour. Can it get any worse?????

Pension Lost

My husband and I are Uk expats retired in Africa. We have not lost all our pension just a huge lump of it. My sad story is that I shall have to give notice to my domestic worker. She supports a 6 year old son, a sister and an aged father all on her meagre salary. They all live in a one room shack. There is no housing here, there is no social security, there is no free schooling, there is no free anything. I have paid for the 6 year olds first year at school, it is his frist day tomorrow. He has never been to school before. Please tell me how do I explain this complicated situation to her. Lins-in-africa.

Liability of Derbyshire Building Society

I have substantial funds in two Manx Bonds orininally taken out with
Derbyshire Offshore but which do not mature unil 30th November 2008. I do not
recall any prior advice from the Derbyshire Building Society that it was
selling Derbyshire Offshore to Kaupthing Babk hf or any offer from
Derbyshire Offshore to refund funds without penalty if depositors were
dissatisfied with the new ownership arrangements. I saved with Derbyshire
Offshore over many years building up my " nest egg " for retirement assured
that my funds were fully guaranteed by the Derbyshire Building Society
which was a highly reputable mutual building society in the UK and a member
of the umbrella Building Societies Association. Once advised of the new
ownership arrangements I queried ( by telephone ) the security of funds and
was advised that funds were, if anything, more secure under the Kaupthing
guarantee ! Given the Derbyshire Building Society's status and high
reputation I consider it reasonable for depositors to rely on their having
carried out due diligence before the sale of Derbyshire Offshore, in
particular as regards the security of depositors' funds. I now doubt that the
Debyshire Building Society carried out due diligence before selling
Derbyshire Offshore to Kaupthing as I now understand even at that time
Kaupthing's credit rating was under review for downgrading, certainly there
was a downgrade in early 2008 shortly after the new ownership arrangements
became effective on 17th December 2007. I query if those who made deposits
under Derbyshire Offshore but which have not yet matured can claim against
the Derbyshire Building Society ? Even if Derbyshire Building Society has no
legal liability I contend that it has moral liability. Any views / comments?

Liability of Derbys BS

We too deposited with DerbysBS Manx 1 year Bond confident in their parental guarantee . When they sold out to KSFIOM we were not at all confident or happy at being forced into bed with a foreign owned bank . In the following literature KSF spelled it out in black and white that depositors in disagreement with the new arrangement would not be allowed to withdraw their funds before completion of the term . Basically we were forced to accept a fait accompli . The events of the last week have confirmed our worst fears and we feel Derby's BS , who placed us in this position , now owe us morally , ethically and financially . If there is any justice in this dilema Derbys BS should reimburse our deposits in full and they should have the problem of trying to recover from KSFIOM .
We would be interested to know if there are many more who share our particular circumstances and to see there views . If there are sufficient numbers we could act in concert and form a pressure group with representations to Derbys BS , HMG , The Liquidator , local MPs , the FSA and anybody else you can think of .

Information re (potential) loss.

425K US Dollars apparently at risk at present.

Life savings.

Requested tranfer of the bulk of this amount - govt guarantee last wednesday. The receiving bank has not received the transfer (Lloyds in Uruguay). Fax tuesday night local time followed by phone call Wednesday morning 5am, IoM time midday. Was told fax to hand, all OK.

Currently in crisis mode. Have a small amount in Santander, one cash Isa and two pending tax claims. Otherwise I'm broke. Without ANY other asset.

Gordon go to HELL - We Have!

A Pashtoon who served with the British Army in Afghanistan, but lost my arm, and sustained shrapnel damage due to a land mine in Paktia province in June 2006. I was medically discharged and given a lump sum payment (fully taxed), and pension. £68K invested in Derbyshire BS(IOM) which transferred to KSF(IOM) last year. The money was to be used to facilitate a small holiday home in the country for my retirement so that I could spend the rest of my life in peace, and nature.

NOW I have lost all. With the stiff upper lip of an Englishman "Shame on you Gordon"

Thanks A Bunch

Dear Gordon & Alistair

We would like to take this opportunity to thank the British Government for its well managed use of the anti-terrorism law. We always knew it would come in handy for something. Never in our wildest fantasies did we believe it would be invoked to shaft the indigenous, law-abiding, hard-working tax paying British citizen.

After 10 years of Gordon’s and now Alistair’s ineptness at the treasury, blowing the nations gold reserves and leaving the best pension scheme in the world a laughing stock, we finally decided enough was enough and it was time to get out of Britain. We were lucky enough to be able to emigrate to Australia, a decision we did not take lightly, being proud, hard working Brits, and left the UK only 6 months ago finally thinking that we could be screwed over no more by the British Government. As we were non residents, we decided to move our money to Kaupthing Singer & Friedlander in the Isle of Man for the short term whilst establishing ourselves in our new homeland prior to investing in property here. Paying full taxes on the money, we might add.

Imagine our delight to find there really is no escape from being shafted by the British Government! After 25 year of paying taxes, scrimping and saving, we find that we are now penniless due to the farcical and draconian way Kaupthing Singer & Friedlander in the Isle of Man has been handled by not only the British but Manx and Icelandic governments.

Coming from working class backgrounds we both started with nothing. We could have decided to do what some do from that sort background and sponge off the state for their living. We decided on a different course, one of working and providing for ourselves. No re-distribution of wealth for us Mr Brown, thank you very much. A career in the military for me and banking, funnily enough, for my wife. If I had known that I would have been putting my life on the line for these people who latterly and casually just wreck your life at the stroke of a pen, I would certainly have thought again.

Our forced return to the UK is now imminent, as we have no money and we are now looking forward to Gordon’s redistribution of wealth in our direction, as we claw all of the benefits we can as economic migrants. We’d like a shiny red car and our council flat to be in St Johns Wood please.

We hope you are proud of what you have achieved for the British people and can sleep easy in your bed! We would like to think your conscience is propping up the sleeping pill manufacturers, but we doubt that very much. It’s obviously no fault of either of you. It’s everyone else’s.

We’re sure all of the money invested by local British governmental organisations will no doubt find its way back to the mainland in due course, whilst the poor old private individual will be hung out to dry.

Yours truly,
Mr & Mrs Gutted

Received by email (not about me)

Sitting out here in Paris, I would like to know what I can do to help all of
us recover our deposits IN FULL. As British expats, we don't have an MP to
help us defend our interests.
I am prepared to take part in a class action and contribute to a fund to pay
legal advisors. Would it be helpful to organise a demonstration in London?
I would jump on the first Eurostar if necessary.
I personally have over £200,000 invested in 1 year bonds, money which was
intended to buy a small property in England so that I can come home and spend
more time in the UK. I get the feeling that KSF depositors in UK and Iceland
have their deposits 100% guaranteed and that we on the Isle of Man are the
only ones to lose out. I only put my funds in KSF Isle of Man because I read
the small print and believed KSF litterature stating that deposits were
FULLY guaranteed by KSF Iceland (parental guarantee). Surely we have a case
against them for failing to accept their liabilities with regard to this
I am not very computer-literate and would welcome having a telephone number
to call to express my frustration.

All gone

My Father has had his lifetimes savings stolen overnight....simply gutted...thankyou to all making an effort to getting this nightmare sorted out

How do you explain to your 3 year old why Daddy's so sad?

I was on a short break to the UK, spending time with the family trying to unwind after we'd brought a bit of a fixer upper at the beginning of the year, it's been a complete money pit that has drained me physically, emotionally and us both financially.

I'd placed all of our remaining savings into Kaupthing EDGE (IOM) until they were required, not much compared to some as it's only £23.5K but it's all I had!

I hadn't been watching the news or reading any papers whilst I was in the UK and the first inkling I had that there may be a problem was reading an article whilst on the flight back home in the local paper, it was about Landesbanki Guernsey being put into administration .

I doubted that there would be a problem with my EDGE account as I know both the Landesbanki & KSF IOM set-up's pretty well, but as I needed the money reasonably soon I decided better safe then sorry and sent a secure message to close the account and remit the funds back to my nominated account, this was at 22:30 on the 7th.

I watched the situation deteriorate rapidly on the 8th and kept an eye on my account through the EDGE on-line banking system throughout the day expecting a reply to my message which never came, although a statement of assurance was issued via this method. At approximately 19:30 the EDGE online banking system was updated with the days activity and I knew my instruction had definitely not been actioned.

We'd already purchased a new kitchen but rather then paying for it at the time I decided that I'd put 10k on the store card which was offering 6 months 0% Interest, moneys better in my bank working for me rather then a multi-national I thought.

Well after making the minimum payment for the last 6 months I have just over a week to beg and borrow 8.5k before the 23.9% interest kicks in, if I can't I scuppered as I don't even have enough cash left to make the minimum payment!

I feel for all of you who's full deposit isn't covered by the compensation scheme but I can assure you that I take little comfort in the fact that as small depositors we will get our money back because this really doesn't help us in the short term!

Kaupthing Singer Friedlander, Isle of Man

I'm new to all this, so please bear with me .......Firstly, I'd like to say that my heart goes out to each and everyone of you with similar stories to my family's.

Also, I'd like to tell you all about my situation ......... 6 months ago we invested £550k into an offshore bond through AEGON Scottish Equitable. 93% of this money was invested into Kaupthing Singer Friedlander Isle of Man in a 1 year fixed rate account with, we were assured, little or no risk attached. We purposely did not invest into stocks and shares in order to safeguard our investment.

This money was made through the sale of our family business last year. We now find ourselves in the unenviable position of having no jobs; no other money and no potential source of income. Not only that but, should the money be lost, we will have no way of paying our taxes on the sale of the company as this money was part of the investment.

No one seems to be taking responsibility. We are receiving no info from Scottish Equitable and are receiving conflicting information from other sources.

We are at our wits end. All we have, at the moment, is hope!!!!!!!!!!!!

Life's coincidences

I thought I'd share how the universe clearly wanted to keep reminding me of what has happened to all of us since last Thursday in a series of bizzare coincidences (this is all true but is also meant to be a bit of light hearted relief in this depressing time).

I was in the US last Thursday when I looked at my laptop to see news of Gordon's freezing of Icelandic assets. As soon as I saw that headline I suspected the worst and was proven right when I tried (and failed) to access the KSF IOM website. My first reaction was to ring home (despite the time difference) and, as I looked at my mobile to dial the number, the fist thing I saw was the name of the GPRS provider..'EDGE'. That didn't improve my mood :-) About an hour later, in an attempt to distract myself, I switched on the TV and the first channel that came on was showing a re-run of 'the World's Strongest Man' competition. The first competitor was from Iceland! That soon got switched off. The next day I flew back in to Heathrow to find that the baggage carousel that my bags were due to come up on was being shared by a flight that had landed a few minutes before me...from Reykjavik!!!! I avoided any contact with our Scandinavian pals as I might not have been able to resist a whole number of primeval urges that suddenly surfaced. On Sunday I got an email from an on-line travel provider suggesting I should visit 'the land of geysers and Viking lore' and today I walked in to my local food store to be greated by a big sign advertising a 'special' on.......you probably guessed it...Icelandic Cod! I'm not sure what other quirky irony the universe in going to come up with next but I'm actually beginning to look forward to them...must be my gallows humour! :-)

Keep positive all...we're strongest together and if we don't let our hopes dwindle.

Can't grasp it!

I'm in the same boat as all of you who have suddenly been cut off from their savings through no fault of their own - but I'm feeling very lonely.

I placed my inheritance from my father, who died in 2007, in Derbyshire Offshore, which was bought by KSF in September 2007. Any anxieties I'd had about my financial security in the coming years were completely neutralized as I realized that I would have enough to lead a reasonable lifestyle when I become a pensioner in two years time - true, not a life of luxury, but not a life of poverty, either.

I closed off two-thirds of my legacy in a Fixed Account for one year and dedicated the remaining third to financing the renovation of my home. At the end of August, my husband and I moved out of the house to rented accommodation, so that the builders could move in. The house is currently in an unlivable condition: floors, kitchen and bathroom have been ripped out, parts are roofless, there is no flooring, windows or doors.

I cannot grasp that I have been denied access to my own money because of global economic forces over which I have no control. I am at a total loss as to how to proceed with my renovation, with my life.

KSF - what a joke

Probably like many on this site, I came to KSF by way of the Derbyshire. Very happy with them, never heard of KSF but checked them out as best I could and it all seemed to pan out OK.

The classic of course was the "irrevocable and binding" committment from Aidan Doherty that my funds would be covered, so...."customers can continue to have peace of mind regarding the full security of their deposits."

That made me feel OK but of course, in the end, it really means nothing. Or is there really a legal backing for that? The Icelandic FSA have told me we are NOT covered, so I feel more gutted/duped than ever.

I have to say the best thing to come of this - if one can really say that - is this website. So glad that I'm not alone and really, really hope that I/we can get my/our money back. My stomach is really churning now...

what now?

Dear All,

I am a German expat living in Mzoambique for the past 11 years and have opened a account with the original S&F branch because it was impossible to open a foraign currency account in Germany. The bank was recommened by british friends who were satisfied with the bank. I got my monthly salary paid into the account and used to transfer part of it down here to cover expenses and save the rest for a house. Now I have absolutley no access to it and I have bills like children school fee's to pay, rent and normal living expenses.

I am in full support to have a spokesperson and to go public with this, the news are full about the help other subsidiaries of Kauphting are receiving, but not a word about the depositiors of the IOM branches!!! Its a huge scandal!


re: my story

I was turned away from UK banks when my work took me to The Netherlands. They didn't want to know. It's the same for many expats, at least those of us who don't work for large multinationals which often find ways around this for you.

My 40,250 savings were in sterling and it made no sense to convert it to Euros. After a long time deliberating, I acted on the suggestion of my financial adviser and out them into KSFIoM, just 4 weeks ago.

I, like many of us, tried to move the money over a week before the bank ceased trading. What followed was an immoral and frustrating litany of excuses by the bank as to why my password didn't work. When I finally managed to access my account a week later after a lot of tearing my hair out, I tried to move - but it was still 'pending transaction' two day's later, on the dreaded Thursday evening.

I was recently made redundant and am just starting up my own campaign communications consultancy. I now have no money at all, everything I had was in the account so times are very lean indeed.

Our story

We deposited our life savings with KSF (IOM) in July 08 - opened a US Dollar account with around $290,000.

The cash was proceeds from our UK house sale. We moved abroad to Sri Lanka for a two year contract and now we've lost everything. Even a payment of £50,000 compensation would be devastating. How are we supposed to move back home with our savings gone?

We've had sleepless nights and endless worry but I feel much relieved to have found this website. My absolute gratitute to whoever set up this site. It's comforting to know you are not alone and that together we may be able to do something about this mess.

Mark H

A Small Tale of Credit Crunch Tragedy and Kaupthing Edge (IOM)

Firstly thanks to the person/people who set up this group.
Ours is one more tale, a small drop of misery in what appears to be a tsunami of hard-luck stories and personnel tragedies that are unfolding for so many people, in so many countries, because of the credit crunch. I am British and I live with my family in Dubai, a city in the United Arab Emirates. My wife and I are paid in dirhams, a dollar linked currency which we have sent back to the UK as US dollars over the years we have worked abroad. We opened an account with Kaupthing Edge, a subsidiary of an Icelandic Bank, in the Isle of Man and transferred our entire dollar savings into this account in June. My wife and I work in the wildlife/conservation and education field, not professions known for being greatly rewarded financially, but we enjoy our work and over the years we saved a good amount having lived within our means, and being well motivated to save, not spend, by our dream of a house in the Devon countryside where one day we will bring up our kids. The dream was close and we have been looking for properties, but now like so many people our dreams are on hold. Kaupthing Edge Isle of Man has gone into receivership and like thousands of other people with deposits in this bank we have a huge question mark over how much of our savings we may ever see again.

What has made me most angry about the whole situation is the issue of depositor guarantee. When I checked this with Kaupthing Edge in September I spoke to their senior customer relations executive (I can provide a name) and was reassured that the funds were fully guaranteed by the parent company and I was sent an e-mail with this information. Indeed his e-mail ended with the following silky smooth reassuring words….. All deposits with Kaupthing Singer & Friedlander in the Isle of Man are fully guaranteed by Kaupthing Bank hf. With this guarantee, you have peace of mind that your savings are fully secured. I was checking all of the banks we hold funds with at the time and remember thinking how clever I was to be one step ahead, checking up on their guarantees for deposits. Ahead of the game, but I did not check what a full guarantee meant until 2 days before the bank went into receivership and there was so much ‘noise’ about the state of the Icelandic banking system that, like all the other stampeding and panicking lemmings trying to save their hard earned cash, I tried to remove my funds. While able to access my account on line, I transferred funds and breathed a sigh of relief. But it was too late; I think I missed the boat by a few hours. The next day when I checked, the funds were still there, the Bank had hit the international press and no one at the bank was answering the phones. Game over….the rest is history.

Sleepless nights have followed with some of the most agonizing moments of my life in the darkest hours of the morning at 3AM when one is at one’s lowest and when one is overcome with emotions - I have been cheated, I have let down my family, and I have failed myself. And when the people who have cheated you have disappeared and there is no hapless bank employee to vent ones frustration on (no contact from the bank by e-mail, impossible to contact by phone) the only person one is left with to blame and to be angry with is oneself. The words below cannot explain the wrench and worry and raw fear caused by the feeling that one has lost everything. But at 3 AM in the morning when the future is black this was my personnel abyss.

It was hardly a week ago that my wife and I were reading the Bible to our kids before bed and we read Mathew 6: 19-21 (Treasures in Heaven). “Do not store up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal. But store up treasure in Heaven, where moth and rust do not destroy, and where thieves do not break in and steal. For where your treasure is, there your heart will also be.” How prophetic the words appear to be to all of us trying to keep hold of our savings in the current wealth – evaporating climate, where the moths and rust are the financial wizards who have packaged and parceled out the toxic subprime loans like biological weapons that appear to have infected and bought the whole financial system close to collapse. However, the analogy between banker and moth is too mild in my opinion. They are nothing but rats.

Footnote: My heart and prayers go out to the people who are sick with worry at this time and to the retired folk who have trusted their life savings to this institution and who may see a small fraction of their savings returned and let’s not forget the ordinary people of Iceland who are suffering their own financial meltdown.

Tom Bailey, Dubai

Tom you have just moved me

Tom you have just moved me with your story, if there is anyone up there you and your family deserve yours life back as eveyone else, perhaps someone should show your story to Mr Brown PM, i am sure he would shed a tear also.

Warned but didn't take action.My story

I actually was warned by a friend of mine working for the Societe Generale Bank,last July,that his bank had stopped to have any dealings with Kaupthing since last January, because of their poor credit ratings.However,not taking my friends's words at face value,I called Kaupthing IOM,emailed them,and got a reply showing me how safe and trustworthy they were with their "parental guarantee"stating very clearly that "ALL deposits were also fully guaranteed by Kaupthing Bank hf.This guarantee is lodged with the Financial Supervision Commission in the Isle of Man.......!!!!
What a bullshit that has proved to be!Alas,I was sufficiently convinced to keep my savings;the rest is like you guys,history!
I have over 148000 GBP carried over from the defunct Derbyshire Building Society,savings which in 30 years of my life spent in Saudi Arabia,I never touched,thinking that that "nest"would be for my retirement.I am now 58 years old,facing the prospect of my job being saudised,with no other jobs on sight,and the bleak and scary prospect of having to spend a miserly retirement!
By the way,is there any one facing a similar fate,(loss of funds with Kaupthing IOM),working in Saudi Arabia?Please,let me know.
And before I forget,a very big thank you for the man or woman who initiated this forum.

Business accounts and new compensation scheme

We are a partnership involved in the Kaupthing Singer & Friedlander default.

I asked to FSC why the new compensation of depositors regulations will exclude any partnership from the compensation scheme.

Our partnership is a family partnership with me and my 68years old father as members and we sell a single software product !!!

We are not a PLC, we work really hardly to make our money !!

I invite all depositors in our situation (partnership, family trust, business account) to send the same request to FSC in order they could valuate this kind of situations.

Company Accounts

I have my money in two company accounts. I set up my affairs as a company on the advice of my advisors for inheritence purposes as if I died a company simply lives on. I am not a PLC - this money is the bulk of my life savings so this is a very serious issue for me. I don't understand the discrimination between personal and other types of clients. Also it doesn't make sense to me that a joint account gets the compensation limit x 2 but my company money that I need to support a family of 4 gets zero. Hopefully this won't come down to fighting for money from the compensation scheme but if it does then I know there will be many in the same boat as us making a big noise about this issue.

My Story £136,000

My story seems pretty ordinary in here and my heart honestly goes out to all you people. Keep strong whoever you are. You are not alone. We MUST fight this thievary. We must right this wrong. I deposited this money in June 2008. I certainly did not see it as an investment or some type of risk. I feel scared, angry, lost, stolen from, cheated, frightened, guilty (for feeling all of the previous), determined and sick to the pit of my stomach.

From Sri Lanka...first Tsunami and now this!

Dear All,
I live in Sri Lanka. I moved here to retire in 2004 and settled down to what I thought would be a quiet life. I built my dream home on the beach...completed it December 23rd 2004. We all know what happened next. On December 26th there was the Tsunasmi...everything was devastated including my beautiful new home and my village. Many died here. . But...I pulled myself together and started all over again.
I have a refuge in my home for stray dogs..more than 70...its a lot of work to keep them well fed and healthy but I manage because I used, until a few days ago, the interest off my lifes savings to support us.
Of course, you can guess what happened next...I was banking with Singer and Friedlander in the Isle of Man!!
On Monday I made a routine call;...I dont have Uk newspapers or television here/./.I had no idea what was going on.
When I heard the stories but was told that everything was backed by "a parental guarantee" I was concened, so, following a discussion on the phone with The Managing Director Aidan Doherty, I arranged to transfer all my savings here on Tuesday. When he wrote personally and confirmed that everything had been transferred on Tuesday, I was thankful , especially when a couple of days later, the bank collapsed!
But, as yet, nothing has arrived. It usually takes 4 working days so I am in limbo and personal hell.I cant get money from an ATM. I cannot get any replys to the telephone...no one can answer me wether my money is on its way or was it a big joke to them to mislead the public into a false sense of security.
Now I am here with no money except enough for this weeks food. Then what???? How do i live and feed my dogs.
I had almost 190,000 Sterling pounds with the Isle of Man Singer and Friedlander...no pension...just that. ITs my life savings.
But no one will answer the phone or return calls.
Of the 2 disasters, The tsunami was easier to cope with because at least we knew what was going on.
I almost lost my life in the Tsunami but recovered. Now the bank has , without remorse, effectively destroyed it.

£950K in Kaupthing Edge and KSF

I have not had a nights sleep in a week . I potentially stand to lose about £950K. This was my most of my life-savings following the sale of my business as the result of recently being diagnosed with a life-threatening illness . My savings were only in the bank temporarily due to the high interest rates payable on US$ prior to a retirement home purchase that I was presently making in the USA . The bulk of my savings had been recently placed into a Kaupthing Edge account and at the time of the account set up a Kaupthing Edge member of staff advised me to use my existing KSF account as the designated account for withdraws . I had already given instructions to remove most of my savings from KSF before the collapse of the bank but because of the delay in having to first transfer between the two divisions my funds did not leave KSF in time .
Oddly enough part of my withdraw instruction involved a currency exchange . This part of my instruction , which made a large profit for the bank was actioned on time , but the external transfer out of the bank was never made ! I hope the Isle of Man government intends to offer all of us the same protection as it is being stated that the UK government will for savers in the UK branches of KSF . If not I will withdraw my remaining savings in the IOM and I hope and expect many other IOM savers will do the same . Hopefully the prospect of the IOM becoming another Iceland may give them an incentive to fight for our interests . I am very angry , very worried and still in a state of shock and so I can say no more at present . My health has suffered greatly as a result of all this and I suspect so has that of many other savers .


Hi, thanks to everyone for putting up this site.

I have two small business accounts and a personal account with KSF IOM. around $200k in total.

I instigated transfers on Monday and Tuesday, none of the money has arrived at the destination accounts. The online banking system showed transfers were accepted and I printed out the transfer details.

On wednesday I checked the account and it showed the amounts had been deducted from the balance.

On Wednesday, the prime minister of Iceland was interviewed on TV and asked specifically if Kaupthing was safe, he replied as far as he was aware they were safe. Next day they were taken over by the government.

The MD of KSF IOM stated that on Tuesday he and his staff knew nothing of the situation.

The prime minister of Iceland and the MD of KSF IOM MUST have been LYING. It is impossible for them not to know what was happening.

The Liquidator, Mr. Michael Simpson is also a well known individual who is also handling the liquidation of the Shepherds fund which closed almost 4 years ago.........very little has been done and the communication from him comes once every six months. Initially, it was that no one would lose anything.....then investors would probably receive little if anything. The point being that it is in the liquidators best interests to keep things going as long as possible so as to generate fees, which are substantial.

What I'm saying is don't expect any sympathy from Mr. Simpson.

Doing nothing is rarely the best course of action...if certain people believe they can have meetings and steer things in the 'right direction' then surely a concerted, coordinated effort on the part of everyone would have a greater effect.

A petition 'signed' by everyone sent to the right people would bring it into the public and government eye.

The IOM has promoted itself as the premier offshore centre, so far they have proved they are far from it. if they are to maintain their reputation then they need to stand up for depositors, not just individuals but everyone who has money in banks on the IOM.

Iceland has been in the news, KSF have been in the news. A big story was put out how the government has 'saved' KSF depositors by having ING direct take over accounts and guaranteeing them 100%.

Those who invest in IOM are not necessarily 'fat cats'. If you live offshore you have no choice but to open an offshore account. We should expect to receive the same treatment as 'UK' investors.

KSF actively touted the fact that the IOM bank was guaranteed by the parent bank. The icelandic prime minister is well aware of that, yet he has stated that he will NOT honour the banks obligations to IOM investors. I'm not a lawyer, but I'm sure there must be some legal responsibility (if not moral) there.

The icelandic government were responsible for ensuring the banks operated correctly, obviously that wasn't the case and the regulators must be held to account for their failure.

Pressure on the IOM government, the UK government and the Icelandic government is the only way to ensure this doesn't just get swept under the carpet.

As for the potential buyouts, telling the world that we're not happy and not going to take this lying down will not stop any proposed investors from taking over. Their interest will be based purely on the commercial value of such a takeover.


My Total Loss

I have saved with Singer & Friedlander since 2001 before it became KS&F. I recently sold my house and
am currently staying with a friend while I search for a new property. I was in the process of transferring the house funds from KS&F IOM to HSBC (to spread the risk) but was caught in the crash and was unable transfer it in time. So In addition to the loss of my fixed term bond worth several hundred thousand pounds (due to mature in January 2009) and a £20,000 cash account, I have now also lost all the proceeds from my house sale. Everything held with KS&F was the result of 35 years hard work, family inheritance and just now the sale of my house. My money in the bank/s was to be used to fund a reasonable retirement (my pension) .............

I am British born now living in Scotland, a UK resident and a tax payer having returned from working overseas in 2000. I have just taken early retirement and now am entirely financially ruined. At my age and in the current economic climate the prospect of finding any work is bleak to say the least. It is unbelievable to think that within a few months from now (as soon as my remaining funds with HSBC run down) I shall actually be homeless and joining the dole queue and become yet another additional strain on the economy!!

I am writing this at the moment in total disbelief that after years of hard work, planning and saving to fund the later years that it has all been stolen away almost overnight. Like most of you on here I am just an average, hard working person who tried legally to do what was best financially.

I echo what most of you are saying and wonder why our plight has not been picked up and flagged by any of the media. How many of our fellow British citizens are actually aware that their fellow countrymen, taxpayers and neighbors are being ruined or at best have lost all their deposits, not many I suspect.

I can only assume that they have been fed the sound bites and various inferences telling us that 100% of "British savers/savings" will be secure. I fear that just because we banked offshore, the assumption in the public's eyes is that we are all fat cats, super wealthy or tax dodgers. As you will know from your own circumstances this is not the case and far from it. Having read the heart rending stories of average people like myself who only try to work and save hard for the future but now ruined I know our story must get out to the media!

The point must be made and made hard, that we the savers and depositors are just your average, "normal" people who in these days of internet and international banking only put our money into a "safe" and very reputable institution which happened to be offshore yielding competitive interest rates. So where is our crime, what have we done wrong to be shunned, ignored and remain unprotected by the British government?

When the realisation that there are actually thousands of UK resident depositors already losing all their deposits in the Isle of Man what will the repercussions be not just for other IOM banks but also the Channel Island banks and for their entire economies based so heavily on their financial services industry?

If we are to be financially punished for having the temerity to invest our hard earned money in a bank in the UK, albeit offshore, I want to know why. Its time the media got our story out into the public domain and our government acted affirmatively to protect 100% of the deposits held by private British tax paying savers in what was KS&F IOM.

I wish us all good luck I fear we are going to need it.

House and Cash Taken in Viking Raid

Aspirations of UK primary residence house purchase dissolved as purchase capital took flight! What to do....?
Shocked, Angry, Sick and Confused and very very worried. 25 years of hard work and careful saving - gone up in mist by some Icelandic Geyser.

A new life up in smoke

We have just moved to Spain to start a new life and needed the money to extend my wife's visa here. Now - no money, no visa, no nice flat we have just moved into, just a fool's hope.
My wife has to get on the plane and leave the country now. My family is literally torn apart because of this.

Trying to adjust to reality

My husband and I are brits living in the USA at present. Like many, we had our UK money in the Derbyshire before it was taken over by KSF. It was house sale proceeds and supposed to be safe so that we had a way to move back to the UK. It also respresented a lifetime of careful saving. We are no longer young people, my husband is retired, I was planning to retire in 5 years so we could return to UK and enjoy our family. There is no way we can ever replace this money and our dreams have been shattered. My husband is blaming himself and it is so hard not to be able to comfort him. I am feeling completely and impotently angry. This is a devastating event at this time in our lives and puts everything we had dreamed of out of reach. At this point, I cannot see how we will be able to find the money to move back to our home in the UK.

On Monday 6th, we requested a transfer of a large part of the money but that request was never honored by KSF. We watched our account for three days believing the stories from KSF in London that the IOM office was "Just a little backed up with work". I feel like an idiot for trusting them.

Total lost: $200,000

£11,000 Missing

Mercifully for me this was a new vehicle [opened in August] for "quick cash" [albeit a good interest rate] so I only loaded it to £30,000. A routine BACS £5000 out on 6 Oct never happened, but I managed to extract £20,000 later that day (19:20) as I started to panic after watching the News. Personally painful, but not life-threatening, unlike so many others I have read about here and in other forums; you all have my sincere sympathy.

Lost over £700K

Submitted by christ on Fri, 10/10/2008 - 11:17.

Lost over £700K.
I have worked abroad for 10 years but just moved back to UK a few months ago. I researched the company and Iceland and all looked fine.
Have a wife & 3 small kids to support and all our plans have just gone up in smoke.

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