A Dutch judge on Monday declared ailing bank DSB bankrupt after it failed to find a new buyer in the face of client withdrawals this month totalling 600 million euros (900 million dollars), a court statement said.
"The court comes to the conclusion that everything possible was done to save the bank, but that there are no prospects of that being achieved," said a statement from the district court in Amsterdam. "For that reason, the court declared DSB bankrupt."
On Thursday, the court gave DSB until noon on Friday to find a buyer, but bank boss Dirk Scheringa convinced it to give him until Monday morning - reportedly for an interested American firm to scrutinise his books. DSB was placed under administration at the behest of the Dutch central bank (DNB) last Monday, freezing all its activities and client accounts.
Two independent administrators were appointed, who subsequently approached the court with an application for bankruptcy. The bank, which has about 2,000 employees, has recently been in the news over claims it sold clients insurance policies they did not need and extended mortgages they could not afford, prompting some to lodge claims for damages.
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