Now that is voting with your dollars (euros in this case) on a major scale. It is very interesting to see what a coordinated group of people can really press a bank where they did not believe in their policies and forced the Dutch bank into receivership. Pieter Lakeman of the Mortgage Grievances Foundation helped organized this campaign after they alleged the bank carried on reckless lending practices. Over a 12 day period they pulled out over half a billion euros (550 million euros) from the Dutch bank to force its bankruptcy.
Those talks failed and after leaks in the press customers began withdrawing their money en masse. Reports in the Dutch press said that €600 million euro (£550 million), about a quarter of the bank’s assets had been taken out.
On Monday afternoon the court placed the bank into receivership. Professor de Haan says that those mass customer withdrawals ruined the bank.
“Before this bank run occurred, although the bank was not in the best of all possible positions, it was not near bankruptcy. A few weeks before this bank run, the central bank issued a statement saying DSB had sufficient capital and sufficient liquidity.”
Analysis: In the very global and corporate natural of our economies, you need to vote with your money and here is an episode where they did just that. Banking institutions should take notice and hope their practices do not force others to use this as a template.
[...] Organized mass customer withdrawls force Dutch bank DSB into bankruptcy [...]
Can Twitter Fuel a Run On Banks? | The Ingenesist Project
30 Oct 09 at 1:02 am
[...] Organized mass customer withdrawls force Dutch bank DSB into bankruptcy [...]
Can Twitter Fuel a Run On The Banks? | The Ingenesist Project
16 Nov 09 at 5:03 am