AMSTERDAM Nov 17 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.
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