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Kaupthing IoM directors defend their actions in 08 collapse, paper reports

Kaupthing Singer & Friedlander(IoM) bank officials have defended their handling of its collapse.

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KSF(IoM) managing director Aidan Docherty “provided, after a slightly hesitant start, an accomplished performance in defending the actions of the local bank’s directors” during a session before Tynwald Select Committee members who are looking into the bank’s failure, the Manx Herald  reported on Thursday.

Among the issues explored were the sale of the Derbyshire Building Society’s Isle of Man business to KSF in 2007. “Docherty was…adamant the number of complaints about the sale were minimal and the number of customers moving their money elsewhere was ‘miniscule’ compared to the total number of new customers,” the report notes.

At one point, the Herald said, Docherty was asked if the Derbyshire had continued to take money after it knew it was to be taken over. "Docherty replied that it was the responsibility of the Derbyshire not KSF(IOM) to inform customers" of the pending acquisition, "and until the takeover was completed they were unable to control policy decisions of the Derbyshire management".

The paper added that the reason given for KSF(IoM) wanting to acquire the Derbyshire’s Isle of Man operation was its desire for “quick access to funds”.  

The full story may be viewed on the Herald’s website, at www.manxherald.com.

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