The Tynwald has chosen not to have an independent inquiry into the collapse of the Kaupthing bank. Why? Because it does not want the truth to come out. Why? Because it would be a deadly blow to the reputation of the Isle of Man as a trustworthy & competent offshore financial centre.
The word on the street is that it has already been decided that this inquiry should be a public relations exercise to project the IoM as having a vibrant & well regulated financial services industry. Clearly it can not do that if it has a frank & objective report, so we can expect to see a report that will be a whitewash in which the directors and the Financial Supervision Commission will be held not to blame for the demise of the bank.
This is the way politics work in the Isle of Man. The Treasury Minister speaks as though he is doing the depositors a big favour by saying that 75% of them will have their deposits restored by the end of September; that's just a few days short of 12 months since the bank closed its doors in October 2008.
Well, the reality is they would have had their deposits restored a long time ago if the Treasury hadn't introduced what turned out to be a hugely expensive cockup in proposing a Scheme of Arrangement whose primary aim was to look after the interests of the Isle of Man and not those of the depositors.
75% of depositors will get 'compensation' before the end of September but that still leaves 25% who will have to wait 6 years to get back what can be realised from the liquidation of the bank. Those depositors are very angry and will be saying to the world through Youtube & Twitter DON'T BANK ON THE ISLE OF MAN.
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