Told to use UK Kaupthing

The UK Financial Services Authority advised Kaupthing Singer and Freidlander IoM, via the IoM Financial Supervision Commission, to place a large interbank deposit with its sister bank in the UK.  The 'Retail Firms Division' of the UK Financial Services Authority confirmed to the Isle of Man Financial Supervision Commission, on 21st May 2008, that the UK deposits made would be safe.  Based on that evidence the Isle of Man Financial Supervision Commission advised Kaupthing Singer and Freidlander IoM to make the huge £552Million deposit with the UK sister bank, of which it did.
 
So, in a nutshell, The UK Government told the Isle of Man bank to put half a billion pounds in the bank which it subsequently forced into liquidation.