Icelandic Banks - The thread for OFFSHORE savers

expatforever

What is the guarantee for our KSF accounts? or should I say,
What was the guarantee for our KSF accounts when we still had KSF accounts?
At the time that KSF stopped business, the guarantee was 75% of £15,000 (or possibly, £20,000). Then the Isle of Man government raised the compensation level to 100% of £50,000 - a big step up.
When this was introduced, KSF had already ceased business and so our accounts no longer existed?
Timing means a lot here.
Anybody know?

stanley317

expatforever wrote: »

What is the guarantee for our KSF accounts? or should I say,
What was the guarantee for our KSF accounts when we still had KSF accounts?
At the time that KSF stopped business, the guarantee was 75% of £15,000 (or possibly, £20,000). Then the Isle of Man government raised the compensation level to 100% of £50,000 - a big step up.
When this was introduced, KSF had already ceased business and so our accounts no longer existed?
Timing means a lot here.
Anybody know?

Please read message #237 from our man at the ground in the IoM. The short answer is that we are supposed to be covered by the new 100% of 50,000 guarantee.

Occamsrarzor: This is going to start happening more and more as people wake up around the world to find that they've been screwed. This thread is all that some people have. I don't see the KSF website being much use. We should probably start working on a FAQ, otherwise this thread will start to fill up with repeat questions. We can then try and keep it updated as a sticky as facts are confirmed and new information comes in.

Captain_Mainwaring_2

Who knows? some say that the increase is retrospective, some say that in any case there are still assets. There would appear to be two chances - first and best is that it is sold as a going concern, second that there is government intervention to secure the banks, after all, all the rest of the banks have so far either been bought out or been propped by the government.

I'm just watching the clock, sooner today starts and one of the three supposed interested party's gets their hand in their wallet, the better.

MacBiggles

Confirmation of the 2008 compensation rules for KSFIoM is pending, awaiting an official announcement by IoM Treasury Minister Allan Bell, although a negative response would be a shattering blow to IoM as a banking centre. Bell needs time to track KSFIoM funds transferred to the UK as three firms are weighin g possibility of purchasing KSFIoM. Of greater importance for those with hefty sums with KSFIoM is that HMG IS INDEED RESPONSIBLE FOR LEGAL ACTION AGAINST KAUPTHING HF/GOVERNMENT OF ICELAND (see IoM Govt. information below). The irrevocable and binding guarantee given to depositors as an integral part of the purchase by Kaupthing hf of Derbyshire Offshore is the Ace up the sleeve for big depositors; HMG actions against Kaupthing hf/Government of Iceland may not prosper in Iceland, but as most of the assets are probably still in the UK and elsewhere, this opens up Kaupthing hf's worldwide operations to legal action.



The Isle of Man is not part of the United Kingdom but is a territory for whose international relations the United Kingdom is responsible in international law. The United Kingdom is responsible for the defence of the Isle of Man and for providing consular services. The Island makes an annual contribution to the United Kingdom in recognition of defence and other common services provided on its behalf.
Isle of Man Government , http://www.gov.im/isleofman/externalrelations.xml

Captain_Mainwaring_2

I do hope you're right. As far as I could see, KSF IoM should be viable in anycase. I still feel that the best hope of seeing anything every again is a buyout.

Broke_Bule

As with earlier posts I would encourage everyone to e-mail the UK Chancellor. Here's my text based on redbajan's (see post #192 page 10):

Dear Mr Darling,
I am one of many British expatriates who had significant sums, built-up
over many years work overseas, invested with Kaupthing Singer &
Friedlander (Isle of Man). KSF (IOM) collapsed yesterday as a direct
consequence of the UK Govt's decision to put KSF (UK) into
administration - it was revealed yesterday that KSF (UK) had taken 60%
of KSF (IOM) depositors' monies and so of course KSF (IOM) had no chance
of being able to meet the demands of those losing confidence in
Kaupthing.
While the UK Treasury may not be responsible for financial matters in
the Isle of Man, I would ask you to accept your moral responsibility and
include the plight of KSF(IOM) investors in your negotiations with the
Icelandic authorities in Reykjavik today for the following reasons:
1. The very close relationship between KSF(IOM) and KSF(UK) which
effectively operated as one company.
2. Because the failure of KSF(IOM) was precipitated by the UK
government.
3. Because the majority of KSF(IOM) investors are British citizens, who
although non-resident, still visit the UK regularly, pay taxes to the UK
government (tax on Uk income, VAT, council tax, fuel tax, etc.) and are
registered UK electors.
4. Because, like many others, I invested my money with the Derbyshire
Building Society which had a long-standing reputation and a guarantee
from its UK parent - a guarantee that was embraced by Kaupthing Bank hf
when it took over the Derbyshire (IOM) last year.
5. Because the UK has responsibility for the foreign affairs of the Isle
of Man, which clearly by itself has no clout with Reykjavik.
KSF (IOM) investors are seeking the following actions:
1. That KSF (UK) repays all monies it has borrowed/taken from KSF (IOM).
2. That Kaupthing Bank hf, now under the control of the Icelandic govt,
honours the guarantee it gave to Derbyshire investors when purchasing
the business last year: "Kaupthing Bank hf, the banks ultimate parent
will provide a parental guarantee which replaces the parental guarantee
from Derbyshire Building Society from the date of completion, meaning
the customers can continue to have peace of mind regarding their
deposits"
I wish all success to the Treasury officials in their negotiations in
Reykjavik,
Best regards,

Captain_Mainwaring_2

Can't do harm I suppose.

I would tend to append it with a few "Jancok"s though.

Bearing in mind that whilst the IOM is not Darlings concern, the fact that a bank whose depositors is has said he will support "borrowed" 60% of OUR money, the very least he can do is to give it back.

Captain_Mainwaring_2

Now, it's goint to be interesting as to what happens over the lost Council deposits etc.

According to The Sun so it must be right....

"
Mr Brown raged: “This is a real problem because we have guaranteed the retail deposits of even Icelandic branches in Britain.
“This is a problem that has been caused by Iceland. It is totally unacceptable behaviour. I have talked to the prime minister of Iceland.


“We are taking legal action against money that has been moved out of Britain into Iceland. This is effectively illegal action they have taken.”
Later, after a crisis meeting with council chiefs, Mr Brown added: “The responsibility is on the Icelandic authorities. "

Well, if the sauce is good for the goose, let us hope that it is suitable for the ganders as well.

Well, I'd expect in another couple of hours things should become clearer - I'll be up yntil midnight again waiting to see if anything happens.

benharvey

I tried to transfer everything out of Kaupthing Edge IOM on Wednesday middday by BACS. Nothing has arrived so far - and I'm not expecting it too!

I don't believe the UK or IOM governments will allow despositers to loose out (for balances up to £50k) should the worst happen. However I am worried about the time it will take to recover funds.

I'm tentatively hopeful that a better solution will be found - is it too late for KP IOM to be bought by another bank?

There has been some great stuff on this thread, the e-mails have been flying out! I figure the more noise we can collectively make about this, the safer we are.

Best Regards,

Ben

exsinger

Just so you know, the majority of KSF(IoM) deposit money was lent to Kaupthing Reykjavik as an intercompany loan. This means that with the exception of its loan book, the isle of man operation has very few tangible assets that aren't in the hands of the parent and consequently the hands of the Icelandic government.

I feel for you all and hope that a governmental solution is found as I cannot see a purchaser coming in for the bank, with the exception of the aforementioned loan book.