"The forgotten victims of the credit crunch" That's how David Budworth in The Times describes savers who trusted their money to offshore banks before the financial crisis hit. Many are still waiting to find out how much money they might have lost in remote spots such as the Isle of Man and Guernsey. But harsh though it may sound, I can't feel too sorry for them. And other investors should learn from their misfortune.
According to Budworth, "the sense of injustice is stark." The government bailed out UK savers with deposits at UK banks when they collapsed, so that savers lost nothing. And then the government extended the compensation scheme somewhat arbitrarily to fully cover savers in Icelandic bank Icesave. But as he notes, "their compatriots who lost money in Kaupthing Singer and Friedlander Isle of Man and Landbanki Guernsey have not been so lucky".
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