DSB bankruptcy expected to take up to 10 years
AMSTERDAM Nov 17 (Reuters) - The curators of failed Dutch bank DSB expect the bankruptcy process to last up to 10 years, they said in a report on Tuesday, though they have already started taking writedowns on its portfolios.
But the curators -- local attorneys appointed by the court after a bankruptcy declaration to oversee the estate and wind the company down -- did not specify what percentage of DSB's assets they expect to ultimately recover, a figure other Dutch banks are watching for closely because of their obligation to guarantee DSB's deposits.
DSB was seized Oct. 12 after a bank run cost it more than 600 million euros ($893.9 million) in deposits. A week later, after three failed sale attempts, it was declared bankrupt. [ID:nLC637889] [ID:nLJ716022]
Under the Dutch deposit guarantee system, banks insure each others' deposits at a rate proportional to their market share for savings accounts. Analysts expect Rabobank [RABN.UL] to shoulder about 40 percent of the bailout, ING (ING.AS) about 30 percent and ABN AMRO [ABNNV.UL] about 15 percent.
The central bank has said the maximum amount the banks could have to guarantee is 3.25 billion euros.
The curators' report indicated they have already taken writedowns on two tranches of mortgage assets, one by 5 percent and one by 15 percent, for a total of 303.9 million euros. (Reporting by Ben Berkowitz and Gilbert Kreijger; Editing by David Holmes) ($1=.6712 Euro)
- Alibaba IPO ranks as world's biggest after additional shares sold
- Exclusive: Iran seeks give and take on Islamic State militants, nuclear program
- Islamic State tells followers to attack U.S., French citizens: website
- Study of smoking cancer patients fuels e-cigarette debate
- Kurds say they have halted Islamic State advance on Syrian town