The Chief of the Treasury says that the collapse of KSKioM was a "one-off".
It wasn’t.
In June 1982 the IoM Savings & Investment Bank (SIB) went into liquidation. Many of the 3000 depositors lost their life savings & their lives were ruined.
During the next 23 years there were countless legal actions to recover money lent out. Liquidators had to contend with broken pledges and bounced cheques, and spent years pursuing an allegation about millions of pounds of 'concealed' assets which led to them recovering just £225,000 from one of the bank's debtors. The paper chase took in the British Virgin Islands and Malta, among other locations.
After 23 years the liquidation was brought to a close after liquidators fees & court costs had soaked up most of the recovered assets. Depositors were left getting just 29p for every Pound they had deposited with the bank.
Then in 1991 another IoM bank went to the wall when the IoM Branch of Bank of Credit and Commerce International (BCCI) closed its doors. The depositors with BCCI were the first to receive any compensation through the IoM Depositors' Compensation Scheme. 10 years later the IoM government reported that depositors had received 60%.
An international financial accountant who has great experience in liquidation scenarios has offered the view that, though not familiar with the specific detail of the KSFIoM situation, over a six year period the total costs of the KSFIoM liquidation could be of such an order that depositors will be lucky to get 40%. This would be outrageous, and the depositors who have not received full compensation under the DCS will not rest until all that has been lost is fully restored to them.
That would be a 'worse scenario', but anything less than 70% net recovery in liquidation would be a bitter pill to have to swallow.
Certainly in terms of the worst scenario depositors are not going to sit around for 6 years to be then told that recovered net assets are 40% on account of the rest having been swollowed up in fees & other costs.
The Depositors' Action Group will step up its message: DON'T BANK ON THE ISLE OF MAN until justice is done by all deposits being restored 100% as they were in the UK & throughout Europe.
If the government choses to go on ignoring the dispossessed depositors just claim then it will be the skeleton of the Isle of Man itself that will end up in the cupboard.
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Unlike SIB and BCCI the collapse of KSFIOM happend in the 'Internet Age'. It much easier to let the world know of the IoM government's shenanigns. The IoMG don't seem to have realised this.
ReplyDeleteAs someone who stands to lose the large proceeds of the sale on my retirement of my profitable business which was to provide a substantial part of my pension, I find this blog is one of the few things that keeps me going.
ReplyDeleteI was very careful in chosing KSFIoM as my future financial lifeline & am still in deep shock as to what has happened. The government could not care a damn about me. If all 10000 depositors were living on the IoM they would have had the government bending over backwards to get our lost life savings restored to us.
There is no moral integrity in the banking system. On my grave will be the words: DONT BANK ON THE ISLE OF MAN
signed: angryman in deep depression