From: G. Edward Griffins
Dutch government seizes private bank after customers rush to remove their deposits.
WSJ 2009 Oct 13 (Cached)
OCTOBER 13, 2009
Dutch Seize Bank After Run on Assets
By BART KOSTER and STEPHEN FIDLER
AMSTERDAM -- 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.
The central bank won an emergency court order Monday morning that put DSB into the hands of administrators. It described DSB's solvency as being "under serious pressure." Nout Wellink, the central bank president, told reporters that 600 million, or 17% of DSB Bank's total deposits, had been withdrawn since Oct. 1.