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Page last updated at 16:07 GMT, Thursday, 23 October 2008 17:07 UK

Treasury talks over KSF deposits

KSF (Isle of Man) building
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".


SEE ALSO
Governments petitioned on savings
20 Oct 08 |  Isle of Man
Icelandic bank savers await help
18 Oct 08 |  Moneybox
Iceland cash 'may be written off'
18 Oct 08 |  Isle of Man
UK offers hope for KSF depositors
15 Oct 08 |  Isle of Man
Savers demand answers on collapse
12 Oct 08 |  Isle of Man

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