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UK/Iceland spat to blame for KSF crash

A senior member of staff at collapsed bank Kaupthing Singer and Friedlander has said its failure was the result of collateral damage from a spat between the UK and Iceland.

Trevor Foster, who was Head of Banking at the UK arm of the bank, was giving evidence to the Tynwald Select Committee looking into the crash.

Mr Foster, who had a 33 year banking career before being made redundant by the administrators last January, told the committee that tension between the governments of the two countries rose after the failure of other Icelandic banks.

He said he believed the UK Government's seizure of Kaupthing's assets was an offshoot of that situation.

The Select Committee then heard evidence from Gudni Adalsteinsson, former Chief Treasurer at the Icelandic parent bank.

The session was in private as it was conducted via telephone but a transcript will be made available via the Isle of Man Government website.

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