Police say they will be taking no action over a threatening letter sent to the Bishop by a group of depositors with the collapsed bank, Kaupthing Singer and Friedlander Isle of Man.

The letter gives what it calls 'notice of intent' that the group, described as 'dispossessed depositors' will investigate the financial affairs of ministers, members of the Legislative Council and the Financial Supervision Commission.

It claims to have engaged an investigative journalist to expose what it terms 'scandals and corruption' and it says that if the depositors' cash is not repaid before the end of August, all the information they have gathered will be circulated globally.

There is no evidence the writer or writers of the letter are capable of any of the actions threatened.

Bishop Robert Paterson has described it as 'scurrilous blackmail'.

It's not clear yet how widespread the contact has been among the Island's politicians.