MANNIN - BANK CRASH FSC SHOW NO MORAL COMPUNCTION TO RESIGN

A poll in the Manx media has drawn an instant and negative response from members of the public concerned about the links between members of the Isle of Man Financial regulatory body (The Financial Supervision Commission)and Island financial insitutions.

The poll was instigated following revelations that the FSC's Deputy Chairman was also a director of failed Icelandic bank Kaupthing Singer & Friedlander (IoM). Scrutiny of the other members of the FSC show that most are linked to a variety of financial institutions on the Island.

Meanwhile the FSC seem determined to tough things out with the FSC Chief Executive, John Aspden, issuing a statement defending the deputy chairmanand assuring that he has played no role in issues relating to the recent history of the failed bank to which he was linked.

Also despite this most significant bank crash on the Isle of Man for almost three decades occurring on the watch of the current financial watchdog its members are showing no moral compunction to resign.

The usual trite assurances about regulators needing to have a knowledge of the financial sector are sure to be trotted out over the next few days however what is becoming increasingly apparent is that the Island would possibly fair better in the future if the focus is less on financial experience and more on common sense.

Problems in the financial markets were well publicised for many months prior to the KSF crash why the FSC failed to 'read the runes' remains to be revealed.

Meanwhile the off Island media criticism that has washed over the Isle of Man in recent days has not up to date been replicated on the Island. The Manx media have generally been cautious - if not deferential in reporting the issue. However, as time goes on this may change and the media may discover a taste for some investigative reporting its own - watch this space!

J B Moffatt

Director of Information Celtic League

16/10/08