Central bank promises DSB clients EUR 3,000 now

20th October 2009, Comments 0 comments

Clients of bankrupt DSB bank would be able to claim back the first EUR 3,000 of their savings now and the rest of their savings of up to EUR 100,000 hopefully before Christmas.

The Hague – The Dutch central bank has announced that people with savings at the bankrupt DSB Bank will receive a EUR 3,000 advance now and their remaining savings of up to EUR 100,000 before Christmas.

Account holders will be able to claim up to EUR 100,000 under a government deposit guarantee system.

Meanwhile, the finance minister said the 2,000 bank employees who have since lost their jobs would receive preference in finding new jobs.

Meanwhile, the Midreth construction company has confiscated the stadium of the AZ football club, which is owned by DSB bank chief Dirk Scheringa. The confiscation will not have any consequences for the Alkmaar team, which only rents the stadium.

The construction company confiscated the stadium because it is building a museum for Scheringa, who has no more money.

DSB blames government for downfall

An Amsterdam court declared DSB bankrupt on Monday morning after the government rejected Scheringa’s request for a 100-million-euro capital injection to save the bank.

According to the Finance Ministry, the risk for the taxpayer of government intervention was "unacceptably high".

In response, the bank's founder claimed that Bos and the curators appointed by the central bank deliberately steered DSB towards bankruptcy.

Speaking at a press conference at the bank's headquarters in the village of Wognum, Scheringa said: "We haven't gone bankrupt, we've been destroyed."

The refusal to inject cash into the bank also meant the Dutch economy was now dealt a 1.5-billion-euro "hammer blow". Scheringa is now calling for a parliamentary inquiry into the bank's downfall.

He rejected the suggestion that savers would have withdrawn their deposits en masse if the bank had resumed trading, claiming that the positive signal of finance ministry support would have been enough to prevent any further run on the bank.

Scheringa added he had lost almost his entire personal fortune due to the collapse of DSB, and expected to be left with nothing of his banking and football empire: "By the end of the week, I might have no more than my house."
The bank, which has some 350,000 clients, was placed under administration after it failed to find a buyer last week. Account holders withdrew a total of EUR 600 million in the first two weeks of October.

Radio Netherlands / Expatica

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