Dutch Seize Bank After Run on Assets - by Bart Koster and Stephen Fidler
The Dutch central bank shuttered DSB Bank NV, a struggling consumer and mortgage lender, after a run by depositors that followed a call from a consumer group to pull money out of the controversial institution. The government said it would begin an investigation into what happened at the bank, a privately owned institution with reported assets of some €8 billion ($11.77 billion). The DSB seizure was described by the government as a one-off situation unconnected with last year's financial crisis. However, it dealt a further blow to a financial system hit hard by a global credit crunch that resulted in the nationalization of former financial giant Fortis and in multi-billion-euro state bailouts for ING Groep NV and insurer Aegon NV.
DSB Bank depositors are unable to access all their cash but can withdraw €250 a day on debit cards for the next three days. While DSB Bank cash machines have been frozen, clients can use their cards to take cash via other banks. The central bank said DSB Bank clients can open accounts with other banks without going through the usual weeks-long application process. Under the Dutch deposit-guarantee system, accounts of up to €100,000 are guaranteed by DNB through a plan funded jointly by the Dutch banks.
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