One of the more sleezy aspects of all this, apart from the Brown/Darling/Perason/MacCarthy-Fry/Myners Government lying through its teeth when it said it has 'Saved Britain' (In fact it had wrecked hundreds of innocent British lives) is the secrecy surrounding Darling's torpedo-ing of the Kaupthing Hf bank in London.
It may well have been correct for him to destroy that bank, that is not in dispute (It was simply the return of the £550Million to IoM that was needed. Something he had the power to do and power he used to give money back to charities, one Dave Whelan and some small public companies). However, a lesser know fact is that there are a pile of UK court papers that detail the actions of the failing chancellor Darling that have been sealed as secret!
A great deal of work has gone into trying to get them unsealed as they obviously hide some embarrassing facts that this Government does not want revealed. Facts that could have possibly averted the whole disaster in the first place. Even an E-Petition was created to get then revealed (However, as is widely know the Number 10 'E-Petition' site is a waste of bytes as the PM doesn't take any notice of it and never has - it is probably there to give folk a warm feeling that they are doing something. More UK tax payers money wasted.).
The big question is; is it legal for the court papers to be kept secret? It is difficult to see how UK security could be as risk if they were revealed, so why should they remain secret? It is this authors belief that Alistair Darling (on top of all his other failings) is misusing the Official Secret's Act.
This really is a shameful and contemptuous Government that prefers to allow innocent British Citizens to suffer dreadful dispair rather than show some backbone and admit it made a mistake.
And just to prove that the Number 10 E-Petition is a waste of tax payers money, they give a reply. Nothing original. In fact EXACTLY the same words the UK Treasury have been using since November 2008 and in total disregard for the facts that have been said over and over again to this thoroughly disreputable and disgraceful Government. When reading this, just remember that even the Treasury Select Committee (that sat in January 2009) concluded that it was actually very difficult for non-domiciled British citizens to maintain UK bank accounts; without a UK address you are forced to bank offshore. Also remember that it was the UK treasuries FSA who told the Isle of Man Kaupthing Singer and Freidlander bank to put huge deposits in the UK Kaupthing HF bank. Also remember that it was the discredited UK Chancellor - Alistair Darling - who forced the UK Kaupthing HF bank to shut down based on a lie. Also remember that it was the discredited UK Chancellor - Alistair Darling - who has used his powers to order the UK liquidator - Ernst & Young - to pay a Labour chum (one Dave Whelan) his £60 Million back. The response to the E-Petition simply beggers belief;
On 8 October the Financial Services Authority (FSA) determined that Kaupthing Singer Friedlander Ltd (KSF UK) no longer met its threshold conditions for the purposes of its authorisation to accept deposits, and was unlikely to be able to continue to meet its obligations to depositors. The FSA, in the exercise of its regulatory functions, concluded that KSF UK was in default for the purposes of the Financial Services Compensation Scheme.
Following due legal process, KSF UK was put into administration. It is correct that, when ordering that KSF UK be put into administration, the court also ordered that its file relating to the application for administration should not be open to inspection without leave of court (except for the court order and the notification of the appointment of an administrator). The FSA requested such an order because the documents provided to the court contained information which was commercially sensitive and confidential under section 348 the Financial Services and Markets Act 2000.
Ernst & Young LLP has been appointed as the Administrator for KSF UK. As part of the administration process, as is usual, a moratorium is in place on the enforcement by creditors of claims against KSF UK.
Kaupthing Singer & Friedlander Isle of Man (KSF IoM) had deposits in the region of £532m with its sister company KSF UK at the time of KSF UK entering into administration. Under UK insolvency law, KSF IoM ranks like any other creditor in the administration - money that a customer has placed with a bank on deposit (including with a sister company) is a liability of the bank in which it has been placed. The customer only has a debt claim against the bank. If the bank chooses to place the money it has received on deposit from a customer with a second bank, the first bank is placing its own money with the second bank and the customers of the first bank do not have any direct legal claim to the deposit with the second bank. KSF IoM will have been fully aware of this. It could have chosen to put its money elsewhere and to have diversified the deposits it made rather than making a single large deposit, which concentrated the credit risk to which it was exposed. As it is, this sum is now subject to UK insolvency procedure and forms part of the administration estate of KSF UK.
The first UK creditors’ meeting for KSF (UK) was held on 1 December 2008. At this meeting, representation for the Creditors’ Committee was determined by the creditors. Although the KSF IOM Joint Provisional Liquidator is not a member of this Committee, the administrators of KSF UK are in ongoing, constructive and cooperative discussions with the Joint Provisional Liquidator for KSF IOM. Useful information can be found on the administration of KSF UK and KSF IOM on the KSF IOM website: http://www.kaupthingsingers.co.uk/Pages/4035. HM Treasury has been in regular contact with the Government of the Isle of Man.
This can be seen here (Opens in a new window). The only reason that the Government could hide behind this is because the Act (section 348) contains the following:-
2. In this Part “confidential information” means information which—
(a) relates to the business or other affairs of any person;
(b) was received by the primary recipient for the purposes of, or in the discharge of, any functions of the Authority, the competent authority for the purposes of Part VI or the Secretary of State under any provision made by or under this Act; and
(c) is not prevented from being confidential information by subsection (4).
So, under section 348 paragraph 2b, the Secretary of State can make information confidential simply because the Secretary of State used that information. Now there is an Act that is obviously designed to help coverups of incompetence by the Secretary of State!! I openly accuse the Sectretary of State of misusing the Financial Services and Markets Act 2000 to hide the evidence of his incompetence. More evidence that this Government is more interested in coverups than actually helping British citizens it forced into financial terror in the first place!!
This proves how shameful this UK Parliament really is. Not Labour, not the Conservatives, not the LibDems. But the whole 2008/2009 UK Parliament. Fundamentally flawed legislation that is designed to help inept Sectretary of State's keep their cock-ups secret. Shame.