Former MD gives further evidence

A parental guarantee given to depositors with Kaupthing Singer and Friedlander (Isle of Man) was 'up to scratch', according to the collapsed bank's former managing director.

Aidan Doherty gave that assurance at the latest sitting of the Tynwald Select Committee which is looking into the affair.

It echoed the evidence given by the former treasurer to the Icelandic company, Gudni Adalsteinsson, who earlier this month said he believed the guarantee was a vaild document.

Mr Doherty appeared before the committee today (Monday), with fellow directors Donald Gelling, John Cashen and Andrew Davies.

Mr Doherty did the vast majority of the talking, telling committee chairman Juan Watterson, MHK, there had never been any fears about the Manx subsidiary as, at all stages, its liquidity had been 'very strong contractually'.

He also said only 36 per cent of its assets were unsecured at the time, far less than the industry average of around 70 per cent, adding it always looked like the bank would be OK.

There was no mention of the failed scheme of arrangement, or what efforts had been made to recover the bank's assets.

Mr Doherty was approached by Manx Radio for an interview at the end of his evidence, but declined.