Friday, October 16, 2009

DSB bank given until Monday to sell itself

Struggling independent bank has been given until 9am on Monday to sell itself or face bankruptcy.
The bank had previously been given a deadline of midday by Amsterdam district court after administrators brought in earlier in the week applied to have it declared bankrupt.
The bank's owner Dirk Scheringa urged the court to give DSB an extension, saying a potential US financial services company was intereted in a takeover.
Leaving the court, Scheringa told reporters: 'We are still alive, but it will be tough. We have to work really hard for 48 hours. The takeover candidate is extremely serious.'
Earlier it emerged the five big Dutch banks all declined to be involved in a rescue package.
DSB is on the point of collapse because thousands of clients withdrew some €600m in savings following a campaign by customers who claim they have been oversold mortgages and insurance.
Around 100 DSB workers gathered outside the court to support Scheringa, a former policeman who went on to create a financial empire. DSB was granted a banking licence four years ago.
More on thisFees of up to 80% common in credit insuranceInsurance agents warned about DSBMPs demand answers from finance ministerDSB in hands of administratorsDSB boss took millions from 'his' bank

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