Debtfree Issue 202303 - DB SE
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Like Lehman Brothers, who would fall not<br />
too long after, the bank invested heavily in<br />
property and suffered losses when the local<br />
property market went down. As a result, the<br />
bank didn’t have enough cash to repay their<br />
debts.<br />
The bank went into bankruptcy in 2002 after<br />
newspaper articles appeared about it being<br />
bankrupt and customers withdrew R1 billion in<br />
just two days. Trading stopped and eventually<br />
First National Bank took over some of its<br />
business.<br />
Fortunately, many smaller clients eventually<br />
got some of their savings out of the bank but<br />
the bank itself was done and was liquidated<br />
in 2006. A dividend of R7.568 billion, or 4.53c<br />
per share, was paid out to shareholders (the<br />
share had traded at 203c per share before the<br />
bankruptcy).
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