Comments on: Icesave's collapse: What do you think?

By: Julia

Julia — Mon, 10 Nov 2008 18:59:57 +0000

Dear Adrian, In response to your article on October 8, 2008 in your article "Icesave’s collapse: What do you think?" admittedly rather late, I am writing to ask if you could research and highlight the experience those of us who HAD savings in the Isle of Man branch of Kaupthing banks are now facing. Our savings have been frozen by the UK Government in the shape of Gordon Brown and Alistair Darling. Our money has been taken to pay off savers in this and other Icelandic banks, on the UK mainland. Thus we have been deprived of our money – possibly forever. Needless to say, people are not taking this action lightly and a website http://www.ksfiomdepositors.org/ set up to share stories, help those who now have nothing and in some cases, no hope, action groups, etc. Do you know about this and the effects it has had on the lives of real people – not tax dodgers as Alistair Darling seems to consider us.

The mission of the KSFIOM Depositors Action Group is to do everything in our power to ensure the 100% return of depositors’ money.

By: Andrés

Andrés — Mon, 13 Oct 2008 13:13:49 +0000

Johan, with all due respect, you don't know what you're talking about.

First of all, we're not even part of the EU, so that whole part was just weird.

Secondly, I didn't take your money, neither did my Government.

That money was deposited into an account with a private company. Now this company has failed, and it's assets are being sold off to cover it's debts.

Deposits get first priority in those proceedings. So they should be mostly covered.

If not, the Icelandic state has a legal obligation to guarantee a minimum amount on each account, I think that amount is around 20.000 pounds, but I'm not entire sure.

The government will not default on those payments, though the exact mechanics of how they get paid, and how much will be left to pay after assets have been sold have still to be worked out.

I don't see how you can act like we, as a country, are somehow robbing you. Everything is being done according to the laws that apply, and our government is doing it's best so that nobody gets shafted. The government is standing by every obligation it has.

If you want to get angry that it's not going beyond the legal requirement, which might put us as a nation into obscene debt for generations, then you probably just had an unrealistic idea of what governments are responsible for in a situation like this.

By: Johan,Netherlands

Johan,Netherlands — Sun, 12 Oct 2008 19:29:51 +0000

TO all icelandics who still do no understand what the implications
of your government statement shall mean for you in the future :

Except for Iceland shall the rest of EU stand side by side
When the turnaround in economy comes, it comes to EU
and not for Iceland, because nobody can trust you as a
reliable partner in the whole wide wold

After all the money of foreign accountholders does NOT belong to you
or your government ,while the rest of our banks do the payback

By: Andrés

Andrés — Fri, 10 Oct 2008 17:47:27 +0000

I don't have an icesave account, but I am an Icelandic citizen.

And for my part, I'd like to stress that our government has not reneged on any guarantees.

I don't want debts of private companies put on my shoulders as a tax payer. Would you?

The assets of these banks will be used to pay depositors, who have been made a number one priority when it comes to selling off assets as part of bankruptcy procedures. These assets of Landsbanki should cover most of the deposits. If it's not enough, then there is a minimum guarantee, that the government actually is responsible for. If there are still remaining deposits unpaid, that would be solved diplomatically between the UK and Icelandic governments. Our government has said as much.

I, as a taxpayer, don't intent to take on billions of pounds of debt that belongs to a private company, just because it happens to be from my country. Our government never made any promise to guarantee foreign deposits 100%. That promise was made for domestic deposits.

Nevertheless, they intend to do their best to make sure everyone gets theirs back, but for foreign deposits, they don't have any legal obligation to guarantee it.

By: Philip

Philip — Fri, 10 Oct 2008 15:14:49 +0000

There is hope:

Chief Minister of Isle of Man, Tony Brown MHK, has today confirmed that a parental guarantee was given in September 2007 by Kaupthing Bank hf, registered in Iceland, to discharge the liabilities, including
client deposits, of its Isle of Man subsidiary Kaupthing Singer & Friedlander (Isle of Man) Limited.

“The Isle of Man Government is determined to protect depositors with the local subsidiary by pressing the Government of Iceland, which has nationalised Kaupthing Bank, to honour the commitment given to its Isle of Man based affiliate.

“Accordingly, we have made representation to the United Kingdom Government – which is responsible for defending the Isle of Man’s interests internationally – requesting them to press the Government of Iceland to honour Kaupthing’s guarantee,” the Chief Minster said.

By: Philip

Philip — Fri, 10 Oct 2008 14:26:51 +0000

I would like to draw your attention to a fact that has not been reported in the press – UK citizens have lost millions in deposits as a result of the Kaupthing Singer & Friedlander situation.

Kaupthing Singer & Friedlander (Isle of Man) Limited is being wound down (http://www.fsc.gov.im/ViewNews.gov?page=lib/news/fsc/kaupthingsingerf2.xml). The UK government has given no indication that it guarantees deposits held by UK citizens in the Isle of Man accounts of http://www.kaupthingsingers.co.im/ or http://www.kaupthingedge.co.im

British citizens living overseas make up the bulk of depositors. With ISAs and other mainland savings options unavailable to UK citizens working or retired overseas they save their money in places such as Isle of Man and Jersey, which have an important role in Great Britain’s position as a financial center.

However, UK mainland residents also legitimately bank in the Isle of Man to defer the timing of tax payments.

I have my life savings with Kaupthing Singer & Friedlander (Isle of Man) Limited and the Depositor’s Compensation Scheme is limited to GBP15,000. New compensation regulations were been approved on 10 October re £50,000 per individual, but it is to be clarified whether these will apply to Kaupthing.

My comments on the situation are: “Under British law, the United Kingdom retains paramount power to legislate for the Isle of Man, yet Gordon Brown is ignoring thousand of honest hard-working Britains living overseas, and Britains in the UK that legitimately bank in IoM.”

“UK ministers state that retail depositors in Kaupthing will be paid out in full, but the UK citizens who are account holders in Kaupthing’s Isle of Man branch are being ignored.”

“It is the UK government’s actions towards Kauphthing’s mainland UK business that contributed to this situation. The government should afford its overseas citizens the same protection as those in the UK.”

"My Isle of Man The Derbyshire Building Society was taken over by Kaupthing. I didn't chose this bank, but the FSC authorized it as legitimate."

By: Victor Dumont

Victor Dumont — Fri, 10 Oct 2008 08:44:41 +0000

Let all the markets in the world crash its the decision of the people who invested with confidence then and cry now because they made a mistake. They believed in the companies that they invested in.

Those of us who have stayed o the sidelines and been prudent have now a chance to make our money in long term investments.

The tables are turning for those who had not, and who now have a chance to have.

By: C. West

C. West — Fri, 10 Oct 2008 06:25:22 +0000

As bad as this is – the system is underdoing a correction created by a "credit crisis fault" which effected everything through the "prime/sub-prime mortgage" instruments which were acquired worldwide – 2008's version of "junk bonds".
I'd expect to see everything start to stablize when the DOW reaches 6400 – 7400+, and the Nasdaq reaches 1300 – 1400+.

By: cathy

cathy — Fri, 10 Oct 2008 01:29:52 +0000

i have an ideal, when any public appointed "employee" uses any negative or otherwise degrating lanuage to describe any other public appointed "employee" said "employee" should be fined $1,000,000.00 "U.S."dollars payable to the medicare and social socurity department! at the end of each year the greatest offender should receive an award for the most "UN-AMERICAN person on the planet. maybe if they put their money where there mouth is they might think before they speak!

By: icelander

icelander — Fri, 10 Oct 2008 01:00:45 +0000

As I understood it the foreign branches of the icelandic banks and their assets are going to be sold and the money used to pay back the people who have accounts in icesave! As it stands the icelandic government dosnt have the money to pay back everyone. But the banks have assets, and the people who ran it have some too.
The scary thing is if you think about it is that we the people of iceland and all over the world really just looked at bankers and investors playing around with out money, eating dinners for 1000 of dollars three times a week, driving and racing killer cars and we still said .. they must be alright... lets put our money there!!!