A member of the Kaupthing Isle of Man Depositors' Action Group believes a ruling by a Reykjavik court calls aspects of the bank's practice into question.
The court has ruled that the 'parental guarantee' offered by Kaupthing Iceland, which was supposed to protect those who banked with its subsidiaries, is not valid.
The guarantee, signed by the chief executive of the Icelandic bank, was not authorised by the Kaupthing board, which has led to the liquidator's claim under the guarantee being rejected.
The parental guarantee was peculiar to the Isle of Man subsidiary of the bank and member of the Strategy team of the Depositors' Action Group Dr Laurence Godfrey says it was used to encourage people to deposit their savings with KSF:
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