Dutch DSB Bank Declared Bankrupt

TOBY STERLING

AMSTERDAM (AP) — A Dutch court declared DSB Bank NV bankrupt on Monday, ending hopes the regional lender, which has suffered a run on deposits, might be sold or bailed out.

The privately-owned bank is the first to go bust in the Netherlands since last year, though the government and regulators insist its failure was not directly related to the credit crisis.

"The court concludes that the utmost was done for DSB to continue as a whole entity, and there is no prospect of that anymore," the Amsterdam District Court said in a summary of its ruling.

DSB was put into receivership of the Netherlands' central bank a week ago. Customers had withdrawn about a sixth of the euro4.3 billion ($6.4 billion) the bank had in deposits at the start of the month.

The government insures the first euro100,000 of retail bank accounts. Finance Minister Wouter Bos said Monday that money will be paid by Christmas.

Meanwhile the bank's new curators will work to wind down operations and pay creditors, who will suffer large losses. Most of the bank's 2,000 employees will lose their jobs and 1,300 were laid off on Monday.