Thursday, August 27, 2009

Crows nest cry from a sinking ship

Ref: article in IoMToday 27 August here . Allen Bell (IoM Finance Minister) is good at 'smoke & mirrors' statements, putting a bright 'spin' sparkle on a badly tarnished image. The IoM government is taking 22% of KSFIoM assets for the compensation scheme but making it it sound as though it is doing depositors a favour. It isn't 'compensation' anyway. It is just a statutory government advance up to £50,000 in lieu of the government recovering most of it from the realised assets of the bank. Even the levy on the banks for the compensation fund is to be refunded. In other words the dispossessed depositors are paying for their 'compensation'from what is left from the ashes of the bank.

Depositors with over £50k lost will not get a penny more until the IoM government has recoved from the assets what it is paying out to them in 'compensation'. Apart from late delivered emergency survival payments depositors are 11 months down a road called 'ruin' before they are seeing a penny of their lost life savings.

The fact remains the compensation scheme is seriously flawed and now not relied upon by the banks though they still peddle it as 'security' in their glossy fishing publicity. In reality many are having to rely on their nationalised onshore banks as fallback in the event of them getting into serious difficulties. Without this dependency on the parent bank the deposit taking business would be finished on the IoM. The ship is sinking anyway.

The message to the world is simple: DON'T BANK ON THE ISLE OF MAN as the risks of doing so are unacceptable. That message is going out through videos on and through Twitter & Facebook. All the facts & relevant links can be found here

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