Dutch DSB bank declared bankrupt
Bankruptcy
A Dutch court declared DSB Bank NV bankrupt on Monday, ending hopes the regional lender, which suffered a run on deposits, might be sold or bailed out.
The privately-owned bank is the first to go bust in the Netherlands since last year, though the government and regulators insist its failure was not directly related to the credit crisis.
"The court concludes that the utmost was done for DSB to continue as a whole entity, and there is no prospect of that anymore," the Amsterdam District Court said in a summary of its ruling.
After a run on deposits, DSB was put into receivership of the Netherlands' central bank a week ago. Customers had withdrawn about a sixth of the euro4.3 billion ($6.4 billion) the bank had in deposits at the start of the month.
The government insures the first euro100,000 of retail bank accounts. Central Bank President Nout Wellink has predicted a liquidation that will result in big losses for creditors and cost many of the 2,000 employees their jobs.
The failure has raised questions about the functioning of Dutch financial institutions, oversight bodies and the government — as well as DSB's own lending practices.
The catalyst for the run on DSB was a call by Pieter Lakeman, an industry gadfly, for customers to withdraw their deposits in protest because the bank had improperly overcharged mortgage customers.
The central bank and Finance Minister Wouter Bos have recommended that DSB consider trying to hold Lakeman liable for damages.
Related listings
-
Court approves Frontier reorganization
Bankruptcy 09/10/2009Frontier Airlines has received bankruptcy court approval of its reorganization plan, the Denver-based carrier announced today.The action by the U.S. Bankruptcy Court for the Southern District of New York is the last major hurdle before Frontier emerg...
-
Cooper-Standard files for bankruptcy protection
Bankruptcy 08/03/2009Automotive parts maker Cooper-Standard Holdings Inc filed for Chapter 11 bankruptcy protection on Monday, saying it could not repay its debt amid a drop in U.S. auto sales.The maker of auto body sealing systems and fluid handling systems said it had ...
-
Station Casinos files for Ch. 11 protection
Bankruptcy 07/29/2009Station Casinos Inc. voluntarily filed for Chapter 11 bankruptcy protection Tuesday, after the casino operator and its bondholders failed to reach a full agreement during months of negotiations. The company, which blamed the faltering economy for a f...
New Rochelle, New York Personal Injury Lawyers
If you or a loved one has been injured in an accident, contact Kommer, Bave & Ollman, LLP, in New Rochelle, New York, immediately. We can answer all your questions and work with you to determine if you have the grounds for a personal injury lawsuit. The attorneys at our firm are determined to resolve even the most difficult of cases. We will work closely with you to determine the best course of action to get your claim or case resolved in the most efficient way possible. We will fight for your right to compensation! No one should have to suffer a financial burden from the result of another person’s carelessness. The attorneys at Kommer, Bave & Ollman, LLP will aggressively fight to ensure that justice is served on your behalf.