Treasury talks over KSF deposits

The bank has been closed for more than a week

Senior Manx government officials are to meet UK treasury figures to discuss the plight of depositors in the Kaupthing, Singer and Friedlander (KSF) bank.

The delegation will express "concerns" over the situation of depositors, who have about �840m in the stricken bank.

The Isle of Man subsidiary was forced to close when its deposits were caught in the UK government's freezing of Icelandic bank assets.

A court hearing on Friday will decide if KSF (Isle of Man) is wound up.

Iceland talks

Manx Chief Secretary Mary Williams, Chief Financial Officer Mark Shimmin and Financial Supervision Commission (FSC) Chief Executive John Aspden will be in London while the hearing takes place.

The Icelandic bank Kaupthing had issued a parental guarantee in September 2007 to take responsibility for the liabilities, including deposits, of its Manx subsidiary.

But although the UK government - which is responsible for representing the island in international matters - said British savers were protected, it has so far failed to guarantee money in offshore accounts.

UK treasury officials are representing the island in discussion with Iceland in a bid to retrieve savers' money.

Angry savers believe that the governments of the UK, Iceland and the Isle of Man "acted irresponsibly, unfairly and in a discriminatory manner towards depositors".

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