💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Dutch bank with FinMin ties fined for bad lending

Published 07/01/2009, 11:48 AM
Updated 07/01/2009, 12:00 PM

* Regulator fines DSB for overly large loans, bad advice

* Former FinMin and current ABN AMRO CEO was CFO at time

* Bank retains the right to appeal

By Ben Berkowitz

AMSTERDAM, July 1 (Reuters) - The Dutch market regulator has fined privately held DSB Bank for excessive lending practices and giving bad client advice during a period when former finance minister Gerrit Zalm was its financial chief.

Market regulator AFM said in a statement that it had fined DSB 120,000 euros ($168,800) for the infractions, which took place in 2008. During the period, Zalm, who is now the chief executive of nationalised bank ABN AMRO, was its chief financial officer.

An ABN AMRO spokesman said Zalm had no comment on the fines and DSB could not be reached for comment.

The AFM said in a statement that it had fined DSB 96,000 euros for not using appropriate criteria when granting credit, leading to excessively large loans being given to customers who could not afford them.

It also said that it had separately fined DSB another 24,000 euros for giving bad advice to some customers.

The AFM said DSB has the right to appeal the fines.

An AFM spokesman told Reuters that it had found the evidence of the infractions during a review of clients files for the period April 22 to June 19, 2008.

Zalm was chief economist at DSB from July 2007 to December 2007, and then was its CFO until January 2009. Previously, he served 12 years as finance minister in two separate stints, ending in 2007.

Current Dutch Finance Minister Wouter Bos has said that Zalm is the best person in the country to lead the restructuring of ABN AMRO.

For a NEWSMAKER on Gerrit Zalm, double click on. ($1=.7107 Euro) (Reporting by Ben Berkowitz; editing by Karen Foster)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.