Graeme you are still not commenting on the parent banks 100% guarantee confirmation of which is below in email form to me from Kaupthing in the IOM.

Dear SirFurther to our telephone conversation , I confirm that funds held with us are firstly covered by the Isle of Man Depositors Protection Scheme, and then by our Parental Guarantee. Not only are all deposits held with Kaupthing Singer & Friedlander in the Isle of Man covered by the Depositors Compensation Scheme contained in the Isle of Man Banking Business (Compensation of Depositors) Regulations 1991, they are also fully guaranteed by Kaupthing Bank hf – with this guarantee customers have peace of mind that their savings are fully secured. A copy of this parental guarantee has been lodged with the Isle of Man Financial Supervision Commission.

Deja Vu.

Braders,

I think you really need to speak to Kaupthing, Singer and Friedlander in the Isle of Man for clarification of their statement.

Essentially, I think they're telling you that the parent bank guarantee your funds. The logical question is, what happens if the parent bank gets into difficulty, where do you go for your money? The answer, in your case, would be to the Isle of Man Depositor's Compensation Scheme.

Of course, this is all hypothetical!

---

Cheers,
Graeme Delap, Community Editor,
graeme.delap @ moneysupermarket.com (remove the spaces)

Graeme,

What a kind patient man you are. Customer Service at its best........ ;-)

To end this hopefully...

Your account has been opened in the Isle of Man and is hence NOT covered by the UK financial compensation scheme.

It IS covered by the Isle of man scheme up to £15,000.

The following applies to the funds above £15,000;

Each subsidiary of Kaupthing Edge is a separate legal entity - i.e. a company in its own right. Hence, if the Isle of man subsidiary went bankrupt you would only be entitled to a share of the subsidiary pot of money as a creditor. Kaupthing Edge give you an additional "right" as a depositor via the parental guarantee to allow you to share in the Group pot of money which may or may not also be bankrupt.

Think of the recent XL collapse. The German and French subsidiaries continued trading whilst the British arm went bankrupt. If a parental guarantee was in place then the creditors of the UK arm would be compensated by the two remaining solvent companies in the group.

My advice to the original poster if you don’t need to be in the Isle of Man, close this account and open a UK account from the UK site.

Smala01

p.s. Dont flame me on the detail of XL example - just meant to visualise my point.

Flame you? Just the opposite.....a top class response.....imho

smala01 is spot on again, I'd just add that the parental guarantee simply means that if the uk subsid got into trouble, the parent co. will pay your money back i.e. guarantee claims against its subsidiary. Therefore the whole bank would have to be in trouble before you had to rely on the depositor protection scheme.

Freddie212:smala01 is spot on again, I'd just add that the parental guarantee simply means that if the uk subsid got into trouble, the parent co. will pay your money back i.e. guarantee claims against its subsidiary. Therefore the whole bank would have to be in trouble before you had to rely on the depositor protection scheme.

It doesn't say in the Terms and Conditions to the UK subsidiary that there is any parental guarantee for deposits. In fact it explicitly states that compensation would be limited to £35,000 under the UK Compensation Scheme.

What is your source for saying that there is a parental guarantee?

The whole bank is in trouble it seems. Where does this leave us ? If it is a joint account are we entitled to 2 x 15,000 pounds

IoM news reporting that the govt is due to sit in an emergency session tomorrow to debate the current rather inadequate deposit scheme. The Treasury Minister had previously flagged the idea of increasing deposit insurance to £50k - lets hope it goes through tomorrow.

In practice it would not look good for the IoM's status as an offshore banking centre if they let deposit holders sink with a failing bank - lets wait and see.

The alternative of course would be to take your money out as soon as possible now - Kaupthing is still a going concern in the IoM for the time being...

Any fellow IOM account holders out there?

This news of Kaupthing edge, not good eh. Do you think this will drag down the rest of Kaupthing??? Not good times really!!!!! F%&ked up!!!!!!!

This is a good source of news to keep abreast with what's going on:

http://www.iomtoday.co.im/sectionhome.aspx?sectionID=870

Good news from the site: an emergency government session tomorrow morning to agree an improved deposit protection scheme.

Bad news from the site: Kaupthing IoM management in a crisis meeting all day and queues of savers outside the Douglas office. Doesn't look good to be honest.

I think its fair to say we are bricking it big time at the moment. 60 days notice required on the account and this is day 59!!! Anyone know what it would mean for savers if the Icelandic goverment nationalised the bank???

Monkeyface3604:

I think its fair to say we are bricking it big time at the moment. 60 days notice required on the account and this is day 59!!! Anyone know what it would mean for savers if the Icelandic goverment nationalised the bank???

Difficult for Iceland to nationalise Kaupthing (Kaput-thing?) given that the bank's liabilities are 6 times Iceland's GDP. Not sure what the way out is. At least pleased I'm not Icelandic. I can only hope that the IoM increases the deposit protection to £50k tomorrow and then our savings fall into that safety net. What really annoys me is that when my wife phoned the IoM Kaput-thing office last week to request an urgent withdrawal all she got was the manager telling her how well funded the bank was and not to be silly - everything was absolutely fine. As a consequence she prevaricated and the rest is history.

50K is better than nothing i guess, but depends how much you got in there, 90% loss seems a lot to me!!!!!!

A sleepless night ahead i think.

So who out there thinks there is any chance of the bank some how pulling a miracle and staying in busines???