Santander Next Bank to fail ??!!

mizzbiz

There was a thread earlier saying that a well known American Investor has set up to short Santander. I guess this is where the panic stems from.

The whole guarantee scheme is not much use to people who live from their bank accounts on a day to day basis. For savings, you can wait for the money, for living, you really can't depend on this. It could take an awful long time for the beaurocratic machines to get in gear once the claims start flowing in. It is a worry. Remember Argentina a few years ago when they froze accounts and limited withdrawal amounts to stop bank runs? At some point, they are going to have to consider something along these lines if we see no resolution. Pumping billions of now worthless taxpayer money in won't touch the sides compared to the imaginary trillions being wiped off banks at the moment.

It doesn't matter where the rumours stem from, whether it be MSE (i'm sure it's going to be demonised in history for it's part in the economic collapse, as some would have it), or whether it's the press or whether it's just people thinking to protect themselves on the information they have, it's not suddenly going to be better tomorrow when we wake up and it's not rumour and speculation that set the wheels in motion. I can think of many other causes, irresponsible lending being the tip of the ice-berg.

Cat695

mizzbiz wrote: »

There was a thread earlier saying that a well known American Investor has set up to short Santander. I guess this is where the panic stems from.

The whole guarantee scheme is not much use to people who live from their bank accounts on a day to day basis. For savings, you can wait for the money, for living, you really can't depend on this. It could take an awful long time for the beaurocratic machines to get in gear once the claims start flowing in. It is a worry. Remember Argentina a few years ago when they froze accounts and limited withdrawal amounts to stop bank runs? At some point, they are going to have to consider something along these lines if we see no resolution. Pumping billions of now worthless taxpayer money in won't touch the sides compared to the imaginary trillions being wiped off banks at the moment.

It doesn't matter where the rumours stem from, whether it be MSE (i'm sure it's going to be demonised in history for it's part in the economic collapse, as some would have it), or whether it's the press or whether it's just people thinking to protect themselves on the information they have, it's not suddenly going to be better tomorrow when we wake up and it's not rumour and speculation that set the wheels in motion. I can think of many other causes, irresponsible lending being the tip of the ice-berg.

An excellent post especially about people just using the accounts for wages.....savings are safe but yes will have to be waited for to be got at.

GDB2222

It would make some sense to have say a month's salary on-hand in bank notes. Stashing it somewhere and NOT SPENDING IT might cause some problems.

Cat695

GDB2222 wrote: »

It would make some sense to have say a month's salary on-hand in bank notes. Stashing it somewhere and NOT SPENDING IT might cause some problems.

Is this what it could come to do you think.....people being cash paid because they refuse to have a bank account...stashing money away just to be on the safe side

SingleSue

But for those on benefits or who have their salary taken up with no excess, do not have the luxury of having a months salary on hand in cash..well not without having about 2 years notice anyway to save it up!

I am leaving my accounts where they are for now...my savings are negligable (thanks to my car) and I don't need access to them until next June. My normal bank account is a concern but if the worse comes to the worse, then I will have to receive giros to cash at the post office.

At this rate, we will be back to people wanting cash instead of bank transfers for salaries and hiding it under the bed!

moanymoany

Chris2685 wrote: »

Well looks like I will be spreading my money out (what little is left) a bit more now! How long does it take to set up a new bank account with NS&I or Northern Rock? I heard that they are inundated with applicants and are very slow/not even taking any new accounts...

The trouble with news like this is that it is kind of self-fulfilling.
News: 'Bank X could be next to go down'
Public: 'Damn, I better take all my money out'

NS&I is incredibly quick. It is possible to do it on the phone with a card or by cheque - bet by transfer as well. They move really quickly, the cheque clears in 24 hours. Any checks they do after.

I opened income bonds.

Give them a ring - or I believe you can get the forms from the Post Office if you want to pay by cheque.

I breathed a lot easier when I knew it was in there.

Still debate every day about HBOS!

I know all about panic - not acting in a hysterical way blah ... blah ... blah BUT it is MY money and at the end of the day it is up to me to make a call on where it goes and it goes where I feel it is safe. I didn't create the situation, I haven't made millions out of it, all I have is from earnings and through frugality. I would prefer it if the Government said straight out that all deposits are safe - but they haven't said this directly. If my money leaving a bank happens to be the last straw - not my problem!

That's my view.

Lotus-eater

If Santander goes down, we might as well give up using money and go and steal the biggest gun we can.
Half the small businesses in the UK bank with them (my own figures if you want to be pedantic) and most would go bust overnight if they lost access to their money.

Some things you can worry about, some things, like nuclear war, just aren't worth it.

Heyman_2

Lotus-eater wrote: »

If Santander goes down, we might as well give up using money and go and steal the biggest gun we can.
Half the small businesses in the UK bank with them (my own figures if you want to be pedantic) and most would go bust overnight if they lost access to their money.

Some things you can worry about, some things, like nuclear war, just aren't worth it.

Santander currently look to be one of the stronger banks and are very big - but we've learnt in the last few weeks that no bank is 'too big' to fall, especially if a run on them gets going.

I would hope that given everything that's happened, the eurozone would step in pretty quickly if it looked like they were in trouble. I would also hope that it wouldn't get to the stage where anyone's accounts were suddenly 'frozen' a la Icesave etc

Not going to chance it though :rolleyes:

Dithering_Dad

I had a mailing from my accountant (my business is with a private bank owned by Santander) that said the Spanich banks are safer because they have much more stringent and tougher regulations than UK banks. They simply are not allowed to delve into the sub-prime market.

This reminds me of the attacks on currency during the ERM days. Each one was targetted by Soros and his chums - they made billions from ordinary tax payers.

bertiebots

Why doesnt the government put pressure on spain to stop this vulture? I wonder besides his own,whos pockets he is lining?

I have kept saying to my dh that we are safe(as we can be)....not that we have any savings as such (not even a months salary) so now what do we do? Do we panic and assist the problem further or wait and hope that we wont be left with no access to money to feed our kids? Our mortgage, current account and savings are all with a&l and everything we earn goes out in living costs dds etc...we dont have any spare for a rainy day (despite being totally OS!)

eeeeek! How did things get in such a terrible mess?