Santander Next Bank to fail ??!!

chucky

ceebeeby wrote: »

Is there any substantive evidence anywhere to suggest there are "issues"!

I also have 6 accounts with Abbey, I actually need to go to the bank today but can imagine the queues will be massive if there's a run on them!

there are no issues the bank seems quite strong and robust at the moment.

it makes good reading on this forum though :rotfl: :rotfl:

mr_magoo_5

Dithering_Dad wrote: »

These are hardly the actions of a bank about to go under:

Santander of Spain, the biggest bank in the eurozone, is poised to buy the three-quarters of Sovereign Bancopr of the US it does not already own in an all share deal worth around $1.8bn

hSanatnder on Monday said it was injecting £1b of extra capital into its UK business. This would increase the Tier One ratio from about 8 per cent to 9.25 per cent as of the end of 2008.

Probably better to also look outside of the 'Doom Forum' for economic information.

Oh yea, and Lloyds were buying HBOS with what?
Two weeks later, to keep them afloat, we have to stump up £17B,
Santander are no different than any of the others, exposed to huge debt, they are doing what all businesses do, expand.
At the end of the day they are making absolutely sure they are too big to fail

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ultra10

Dithering_Dad wrote: »

These are hardly the actions of a bank about to go under:

Santander of Spain, the biggest bank in the eurozone, is poised to buy the three-quarters of Sovereign Bancopr of the US it does not already own in an all share deal worth around $1.8bn

hSanatnder on Monday said it was injecting £1b of extra capital into its UK business. This would increase the Tier One ratio from about 8 per cent to 9.25 per cent as of the end of 2008.

Probably better to also look outside of the 'Doom Forum' for economic information.

Try reading the original Link, you never know, you might just learn something

chucky

mr_magoo wrote: »

Oh yea, and Lloyds were buying HBOS with what?
Two weeks later, to keep them afloat, we have to stump up £17B,
Santander are no different than any of the others, exposed to huge debt, they are doing what all businesses do, expand.
At the end of the day they are making absolutely sure they are too big to fail

there not exactly comparible are they!?

if you said Abbey i may have agreed - but Santander have different national regulatory controls that are a bit more robust than in the UK.

also i could never see Santander (a Spanish bank) being bailed out by the UK Governement - do you???

Dithering_Dad

chucky wrote: »

there not exactly comparible are they!?

if you said Abbey i may have agreed - but Santander have different national regulatory controls that are a bit more robust than in the UK.

also i could never see Santander (a Spanish bank) being bailed out by the UK Governement - do you???

A LOT more robust than the UK. It's like comparing apples and oranges.

ultra10 wrote: »

Try reading the original Link, you never know, you might just learn something

I did. The link discussed that a notorious shorter had bet that Santander shares would fall in value. Probably a good bet given the reaction some people on here have had - withdrawing their money at the drop of a hat.

Instead of lining the pockets of a short selling 'spiv', I'll put my faith in the financial times and the robust Spanish Banking regulations. Read this, you may learn something :


http://www.ft.com/cms/s/0/1f50c5d4-8e65-11dd-9b46-0000779fd18c,dwp_uuid=86c92008-1c23-11dd-8bfc-000077b07658.html

So what lies behind Santander’s seeming escape? In part, the persona of Emilio Botin, its chief executive, who has a reputation for being extraordinarily shrewd. However, another more interesting issue revolves around the way that Madrid runs its banks.

One key factor protecting Santander from some of the global woes is the tough approach that the Spanish central bank has taken towards regulating its banks in recent years.

Earlier this decade the central bank in essence decided it disliked the idea of banks keeping vast quantities of credit assets off their balance sheets. It also quietly demanded that banks hold higher levels of reserves than international accounting laws required.

Consequently, it furtively “gold plated” – or rewrote – European Union rules to discourage Spanish banks from creating entities such as structured investment vehicles (SIVs). And when banks such as Santander embarked on an acquisition spree in Mexico, the central bank reined them back.

It's a shame our government didn't implement the same controls, we'd now be looking with bemusement at the foreign banking disaster.

dopester

Heyman wrote: »

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.

Santander look after part of my savings, so this thread gives me the shivers.

However, compared to some banks that joyfully spunk £53 billion at near peak prices in 2007 on some crud that sees them get partially/fully nationalised some 15 months later....

...at least Santander knew what they wanted, its worth to them, and how to do some brilliant deals. I just hope all their previous dealings and current dealings are as switched-on.

The dealmaking reached new heights last year. Santander snapped up the Italian bank Antonveneta and Brazil’s Banco Real as part of the RBS-led consortium’s record-break-ing €71 billion takeover of ABN Amro, the Dutch bank.

Then, in a spectacular piece of opportunism, Santander flipped Antonventa, selling it at a €3.4 billion or 60% profit to Italy’s Monte del Pachi di Siena.

Alongside the aggressive acquisitions, Santander has built a reputation for innovation, obsessive cost control, investment in technology and a relentless focus on what it does best: retail banking. Santander now operates in more than 40 countries, employs 164,000 staff and made profits of €7.6 billion in 2006.

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3136565.ece

StevieJ

!!!!!!? wrote: »

Just short the countries instead, or rather their currencies

(The bigger their bailout as a share of GDP, the more problems they'll have with the value of their currency down the line. No surprises, the UK is particularly screwed in this regard!).

Not if everone is doing it.

epsilondraconis

Just read through all of the posts.

I think it'll be safe to say that I'm confused as to what to do.

My stooze pot is with A&L.

I'm going to jump into bed, pull the covers over my head and pretend it isn't happening. It works for me...

Dithering_Dad

mr_magoo wrote: »

Oh yea, and Lloyds were buying HBOS with what?
Two weeks later, to keep them afloat, we have to stump up £17B,
Santander are no different than any of the others, exposed to huge debt, they are doing what all businesses do, expand.
At the end of the day they are making absolutely sure they are too big to fail

Please see my response to Ultra10. Basically, Santander are not exposed to huge debt because Spanish banking regulations will not allow them to be.

It's a bit like the HPC crowd in here, they thought that house prices were going out of control and so instead of joining in, they sat back and prudently increased their deposits. When the market finally bottoms out they will be well placed to acquire a bargain.

Santander has effectively done the same, they're now acquiring bargains in the form of other banks.

chucky

as big Warren Buffett says - "We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful"

be quick or you'll miss the boat and don't forget if you don't shoot you don't score either...