Santander Next Bank to fail ??!!

WTF?_2

StevieJ wrote: »

Not if everone is doing it.

It all boils down to who has to spend the most propping up their banking systems - or indeed, who can spend the most.

That's why people are flocking to the dollar right now. Proportionally they've spent a lot less than the UK and their strength (hundreds of millions of potential taxpayers, dynamic economy, natural resources, infrastructure) put them in a much better postion than most to support it if needs be.

Of course, what people are choosing to ignore is that the USA has spent way beyond its means for too many years. I think that they can turn it around longer term but they face an extremely severe few years ahead, even if someone with some intellect like Obama gets into power.

baby_boomer

Santander is to put £1bn of its own resources into Abbey & A&L in order that they meet the new government demands of 8% of tier one capital.

Santander is also said to be close to a £1.4bn bid for troubled US Sovereign Bancorp.

These are not the noises you'd expect from a bank about to hit the rocks.

Quasar

baby_boomer wrote: »

Santander is to put £1bn of its own resources into Abbey & A&L in order that they meet the new government demands of 8% of tier one capital.

Santander is also said to be close to a £1.4bn bid for troubled US Sovereign Bancorp.

These are not the noises you'd expect from a bank about to hit the rocks.

Well I only hope that very few people will let the truth get in the way of a good panic-fest...;)

Generali

Dithering_Dad wrote: »

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.

Your earlier quote said that Santander were adding £(€?)1,000,000,000 to their tier 1 capital reserves ratio to make it up to 9.25%.

To put that into context, after the UK Government has put £35,000,000,000 into the reserves of RBS, LLOY and HBOS their t1 ratios will be 9%.

IIRC, B&B were considered to be well capitalised with a t1 ratio of 8%.

Plasticman

Typical - I've just opened a Bradford & Bingley account to put my money in when it's returned from my Icesave account. :rolleyes:

I think the credit crunch is following me!

WTF?_2

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

Citigroup have been trying similar tactics.

Should be interesting to see how Santander turns out .. let's hope they don't end up being another Lloyds.

mizzbiz

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.

Let's just hope they haven't had to borrow billions from the tax payer to do it like lloyds.

BTW is no one worried about the volume of banks Santander seem to be buying...
first Abbey, then A&L, then B&B savings etc etc. And that's just in the UK. How come they have money and everyone else is going under? A bit suspicious methinks.

I also read a lot of posts on these forums that advised people with defaults etc to try Abbey for mortgages as they didn't seem to mind if you were rubbish with paying it back.

Chris2685

Whether they are safe or not, I for one will feel much safer not having all my eggs in one basket!

Chris2685

moanymoany wrote: »

Interesting, I sent the forms and a cheque for the income bonds - then had to send the proof of ID. Wonder if they've changed the rules?

I just !!!! a brick wondering where 2k of my my money had gone from my A&L account, and was racking my brain trying to think where it has gone. As many of you will know who bank online with A&L, they show a bunch of different balances, and show you your 'available balance' before they show up as transactions on your online statement.
I think the money has probably gone into my NS&I account that we opened. So looks like you were right and they do open the account before proving your identity. Quite good in this circumstance, but surely defeats the object of having an identity check?

chopperharris

more of the same internet ripple about a particualr bank , santander is as risky as any bank just now.There is some problems in spains economy which could affect them , especially in bricks n mortar.

I would worry more about the monopolising of banks , santander for one and the large hbs tsb bb one in a few years time.

I still reckon that bankjing shares should have been suspended today to catch the wave from aus and us.

but for now i would be more worried that barclays never took up any offer from the govt for capital.Sure the share price went up because of not taking it , the big guns steering that ship hold a lot of shares and there wont be interbank lending to them from those that took the handout.It wouldnt suprise me if they are too late to the dinner table , because their big wigs simply didnt want to lose some share money before being given the boot by nationalisation.Or simply they didnt want the govt to see thier books and have control of them.

They should have kept shorts on the banking sector banned until long afterwards.

end of more rumourinmongering.