Isolated investors on the Isles
Updated on 21 October 2008
Nick Martin talks to some of the people who may lose up to £850m after investing in Icelandic banks based offshore.
They are huddled around laptops in the foyer of the Sefton Hotel on Douglas promenade on the Isle of Man. They call it the 'Sefton Bunker', a kind of war room, where strategy is discussed, views are exchanged and where sometimes tempers appear to teeter on the edge.
Less than ten days ago none of these people had ever met, but they have been brought together through desperation and determination. They want their money back, their life savings, their futures.
They are the Kaupthing Isle of Man depositors and 8 October 2008 is a date they say they'll never forget.
When the UK Government froze the assets of failing Icelandic banks, it had a disastrous effect on the Kaupthing's subsidiary on the Isle of Man. Ten thousand investors, overnight, lost £850m.
The bad news for depositors was that the UK Government had refused to guarantee deposits up to £50,000 - unlike investors on the mainland. And they are still refusing.
Stephen Thomas moved to Moscow ten years ago where he's been working as a project manager in the construction business. Mr Thomas was one of the few Brits who owned his own home in Russia and in July he decided to sell up and move back to the UK. He deposited $727,000 into Kaupthing Isle of Man - he faces the prospect of losing the lot.
Stephen Thomas and fellow Kaupthing depositor Paul Germaine are fighting for their life savings.
"The British Government really do need to come forward and make a statement that they have safeguarded the deposits, 100% of all of us. That's what we have to do.
"This is desperate. We are terrified that someone is going to top themselves. This is not a joke. We're serious about it."
He hasn't seen his wife Lilia and six year old Alexandra for three weeks and he's been staying in the Sefton Bunker since 9 October - the day after the bank went into temporary liquidation.
"I'm only continuing now because I have to. I'm utterly exhausted. The most sleep I get now is three hours a night."
I'm sitting in the foyer with Stephen talking about what will happen if the bank goes into liquidation. He and thousands of others are hoping it won't get to that stage.
"We're going to take this to the door of Number 10 - no joke - we are financial experts, we are accountants, we are crisis managers, we are solicitors and we're not giving up."
The front page of the Isle of Man Examiner is running with the story "Hospice loses a million in Kaupthing". For those fighting for their money, it's a clear message that the offshore bank isn't just the preserve of the super rich and the tax evaders but that normal people bank here too.
