Liquidators called in at Mount Banking Corp
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.THE Bank of England last night shut down Mount Banking Corporation, a medium-sized bank based in Mayfair, London.
The Bank said it had appointed provisional liquidators from KPMG Peat Marwick, the accountancy firm, to wind up MBC, which has about 3,000 depositors and owes them about pounds 160m.
MBC, with assets of pounds 200m, is controlled by the Shah family, who have business interests in India and Kenya. It is thought that most of its depositors are resident in those countries. However, at least some are UK residents.
A spokesman for the Bank of England, which regulates banks, said: 'Our petition (for winding it up) was based on just and equitable grounds and did not allege insolvency.'
This suggests that while MBC was not in any grave financial peril, the Bank had reservations about some aspect of its management or directorate.
KPMG's Tim Hayward, who with Philip Wallace is the liquidator, said last night: 'It's still extremely early days. We're looking into things.'
It was too early to say whether depositors' money was safe, he said.
However, they were protected to a degree under the Banking Act.
The company accounts of MBC show it has been mildly loss-making for two years.
Its directors as at March 1992 were listed as S B R Shah, M M Shah, B C Shah, P Tucker (chief executive), P S Hargreaves and
W McNab.
The bank, which is based in Mount Street, is a subsidiary of a Jersey holding company, which is a subsidiary of a Cayman Islands company, which in turn is controlled by the Shah family.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments