Banks Nationalized After Bank Run
It was reported that a week ago Dirk Scheringa Beheer (DSB) bank of Netherlands said they had “a hacker attack” which kept their site down for days. It turns out, it is likely no hacker, but the fact that the bank was not allowing withdraws! They had a run on the bank.
Clients of independent bank DSB were unable to transfer their money electronically on Thursday, leading the company to blame a concerted attack by hackers.
But the Telegraaf claims the site crashed because too many customers were trying to shift their money following a tv programme.
Pieter Lakeman, who leads a lobby group of DSB clients who believe they have been over-sold mortgages, said on tv show Goedemorgen Nederland that people should take their money out of the bank. By forcing its bankruptcy, they could then get compensation for their losses, he told the show. The lobby group represents some 1,200 people and is currently preparing a legal claim against DSB.
DSB directors meet after bankrupty claim
Monday 12 October 2009
The board at independent bank DSB is meeting on Monday morning to discuss its reponse to claims made by the Volkskrant that the bank is on the verge of collapse.
On Monday, the paper said the Dutch central bank is poised to take over the running of DSB which it said is on the verge of bankruptcy. The paper based its claims on finance ministry sources.
The paper said the central bank is about to impose ’emergency rules’ on DSB, which is the equivalent of court protection from creditors.
However, in an apparent backtrack on Monday morning, the paper quoted a DSB spokesman as saying the central bank is not about to get involved, nor is the bank technically bankrupt.
According to Nos tv, the central bank has so far declined to comment. But, finance minister Wouter Bos was at the central bank for talks on Sunday night, Nos says.
The Financieele Dagblad reported on Monday that efforts to persuade another bank to take over DSB have failed.
Both papers says the finance ministry has indicated it will not step in and bail out DSB, which has a balance sheet total of €8bn and is considered too small to rescue.
DSB, started by former policeman Dirk Scheringa, has been hit by a crisis of confidence following claims its salesmen saddled customers with mortgages they could not afford and unnecessary insurance policies.
You can find the original article hosted on DutchNews
Dutch lender DSB in central bank’s hands after run
AMSTERDAM — The Netherlands’ central bank said Monday it has taken control of DSB Bank NV after clients began a run amid fears the regional lender might collapse.
Doubts about the health of DSB, a small but well-known bank based in the north of the country, grew since the start of October as media reports questioned its solvency and clients began having problems withdrawing money from their Internet accounts.
De Nederlandsche Bank said in a statement Monday it had asked the Amsterdam District Court to put DSB under its curatorship “because of a large outflow of liquidity that brought the existence of DSB in danger in the short term.”
DSB’s failure is the first suffered by a bank in the Netherlands since several major banks were given bailouts or taken over by the government at the peak of the financial crisis last year.
DSB told critics at the start of October it had 1.5 billion euros in cash – enough of a buffer to withstand a run on its 4.3-billion euros in deposits.
Bank accounts in the Netherlands are insured by the government for the first 100,000 euros, and the central bank said customers would be able to pull money from their accounts using bank passes until midnight Wednesday.
Original article appears on Associated Press