Britain could be forced to bail out one or more of its offshore tax havens at huge cost, according to early drafts of a Treasury report, because the economic crisis has wrecked their finances. . .

The Isle of Man is facing problems associated with the collapse of Icelandic bank, Kaupthing, which had a business on the island. It may be forced to spend hundreds of millions of pounds to compensate savers who have been unable to claw cash back from Kaupthing.

Guernsey could also face similar issues after the collapse of a Channel Island subsidiary of Landsbanki.

Britain has imposed direct rule and suspended the government of the Caribbean Turks & Caicos islands amid claims of systemic corruption there.  13-Sep-09.

http://www.guardian.co.uk/business/2009/sep/13/british-tax-havens-need-bailouts