Kaupthing Singer and Friedland

Treasury written question – answered at on 19 November 2008.

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Photo of Angus MacNeil Angus MacNeil Shadow SNP Spokesperson (Scotland), Shadow Spokesperson (Culture, Media and Sport), Shadow Spokesperson (Environment, Food and Rural Affairs)

To ask the Chancellor of the Exchequer what consideration he gave to the partial or complete taking into public ownership of the UK operations of Kaupthing Singer and Friedlander.

Photo of Ian Pearson Ian Pearson Parliamentary Under-Secretary (Economic and Business), Department for Business, Enterprise & Regulatory Reform, Economic Secretary (Economic and Business), HM Treasury

On 8 October acting on the advice of the bank and FSA, the Chancellor acted to protect the retail depositors in Kaupthing Singer and Friedlander, a UK-based banking subsidiary of Kaupthing Bank.

The Treasury used the Banking (Special Provisions) Act 2008 to ensure a resolution that preserves financial stability and provides protection and continuity of business for depositors. KSF's Kaupthing Edge deposit business was transferred to ING Direct, a wholly-owned subsidiary of ING Group, which operates through its branch in the UK. The remainder of Kaupthing Singer and Friedlander business was put into administration.

Any retail depositors eligible to claim under the Financial Services Compensation Scheme whose business has not been transferred to ING Direct will be paid out in full through the Financial Services Compensation Scheme.

This was the right course of action to protect savers, ensure financial stability, and safeguard the interests of the taxpayer.

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Annotations

Glyn Davies
Posted on 27 Nov 2008 7:26 am (Report this annotation)

Question not answered by Ian Pearson

Nick Campling
Posted on 27 Nov 2008 1:16 pm (Report this annotation)

This action certainly did not safeguard the interests of all tax payers. A large number have had their savings confiscated by HMG as a result of this action because they had savings in KSF on the Isle of Man which was forced into administration because it had £550m of assets rcovered from Iceland and placed in KSFUK.

Reg Wilson
Posted on 29 Nov 2008 4:17 pm (Report this annotation)

But this was NOT the right course of action to protect savers, ensure financial stability, and safeguard the interests of the taxpayer: I was a saver in KSF (IoM)and now unable to access my deposit because it has been locked up in KSF in London by the UK gov; it sure hasn't boosted my financial stability or my family's; and safeguarded the interests of the taxpayer!! - which taxpayer? it wasn't me.