Business News

Court bid to place DSB Bank under central bank control (1st Lead)

Oct 12, 2009, 9:52 GMT

Amsterdam - An Amsterdam court on Monday heard a second request from the Dutch government to place reportedly ailing DSB Bank under the control of the central bank DNB, media reports said. A first request to the court was rejected late Sunday, according to the reports. Earlier Monday, DSB Bank spokesman Klaas Wilting denied reports that the bank is on the brink of bankruptcy and that the government had launched a procedure to place the bank under DNB control. Finance Minister Wouter Bos and top officials from DSB and the central bank met in Amsterdam on Sunday night, to discuss the bank's future and decided to issue an emergency measure for the bank to be placed under the direct control of the central bank. According to reports, the meeting had initially centred around plans for a takeover of DSB by five of the country's biggest banks, as well as the government. With a balance of some 8 billion euros (11.9 billion dollars), DSB is a relatively small bank in the Netherlands. The bank has been the subject of an investigation by the financial markets watchdog AFM for several months. Extremely aggressive marketing resulted in the bank's rapid expansion in recent years, offering high interest on savings and sub- prime mortgages that were usually combined with complicated and risky financial products.

Business News

Court bid to place DSB Bank under central bank control (1st Lead)

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