John Aspden, Chief of the IoM Financial Supervision Commission, counsels that anyone depositing in the IoM is taking a risk in much the same way as if their deposit were an investment. His advice now is not to put more than £50,000 in any one bank on the IoM. Why not? The government is constantly trumpeting about how good is its financial services industry, and how well placed it is to ride the waves caused by the international banking crisis and the recession. if it is so good why suggest that it is risky to deposit more than £50k on the island?
If it is rash to place more than £50k in an IoM bank then why did Mr.Aspden sanction the directors of KSFIoM putting £532million of the bank's assets into one bank, especially knowing that the bank in question (Kaupthing UK) was one of the riskiest of banks to put the lifeblood of KSFIoM? The predictable event of Kaupthing UK going into administration cut of the flow of blood to the very heart of KSFIoM causing a massive heart attack. There was no life support machine in the form of a bank of last resort to resuscitate the patient.
Offshore centres are suddenly finding themselves with their backs to the wall. If the Cayman Isles - the Caribbean 'daddy' of them all - is in dire straights what hope is there for the Isle of Man? The island has nothing like the 3 trillion dollars that Cayman has in its finance houses.
Best advice is not to put any money on deposit on the Isle of Man as it could seriously damage your wealth.