The Isle of Man has branded the failure of Kaupthing Singer & Friedlander IOM (KSFIOM) an "unfortunate, isolated event" as a grass-roots YouTube campaign against the jurisdiction grows.
A plethora of anti-Isle of Man videos have sprung up on video website YouTube attracting nearly 19,000 viewers, since expat pensioner "Fleeced 2008", recorded an anti-Isle of Man video , first covered by International Investment, about one month ago.
The growth of the campaign has not shaken the Isle of Man, which says the depositors compensation scheme (DCS), designed to provide cash to depositors trapped in the bank since October, begins today.
The DCS is due to return 75% of depositors' cash in full, with the liquidator's first dividend following shortly afterwards.
John Spellman, director of Isle of Man Finance, says: "The KSF failure is an unfortunate, isolated event on the island as a result of actions overseas beyond our control."
He insists all parties must work together to recover as much of the frozen cash as possible.
However, expat pensioner Fleeced, who started the YouTube campaign with a video warning savers not to bank on the Isle of Man, says many savers like herself, who had over £50,000 in the bank from selling a property, will still lose a large sum of money.
The video-makers' goal is to press for 100% of savings back for all depositors, a wish supported by the KSFIOM Depositors' Action Group.
Spellman says larger depositors can expect returns in excess of £50,000 as a result of the proceeds returned by the liquidator.
The liquidator has increased depositors' first dividend from an estimated 14.5% of savings to 22.1%, with more cash to follow shortly. "The final return has been estimated to be at least 75%," he says.
Spellman is aware of the videos and says he has empathy for depositors and their situation since the collapse of the bank.
"The depositors are perfectly entitled to express their views despite many postings being misleading or simply inaccurate," he says.
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