Is there many of us who have OR plan to put more than 50k in any Bank/BS ??

bjorn_again

eeja wrote: »

Well Lehman Bros one the largest investment banks in the world recently went belly up and AIG the world's largest insurance co almost bust ...just got a $150Billion bailout from the US government, not to mention General Motors, Ford and Chrysler all teetering on the edge of bankrupcy.
ANYTHING CAN HAPPEN including Santander going bust.

Sure, anything can happen, but if Santander went to the wall I still believe as Masomnia says "the bit over £50k would be the least of our worries". The social consequences world-wide of Santander going down, would be beyond what the home Nation or the European Community would allow. Put it into perspective and imagine if Lloyds or Barclays were to fail, our Country would grind to a halt overnight. Never happen.

JayTee99_2

eeja wrote: »

Soulsaver...you are absolutely right....agree with every word .
As for the poster just prior, the fact Santander wants to raise more cash is indeed worrying as they will have to pay a heavy price and could even fail to raise the required amount from private investors.
Bet the news will result in a further downgrade by Moody's , S & P
and Fitch !

Hah!! now you're showing your true colours of a scare-monger..

that isn't going to happen, it's fully under-written

The Santander-based bank will sell 1.6 billion new shares at 4.5 euros each in a fully underwritten offering, the company said today in a statement. Santander fell 5 percent to 7.92 euros in Madrid trading.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a0p7fKDJLSg0

.

Masomnia

L. bros went belly up because it was allowed to. It was an investment bank that had no deposits, so no savers lost out. It wasn't a clearing bank that processed transactions so there were no widespread knock on effects.

I'm not saying it's impossible that a bank like Santander would go bust, just that it would create such a huge systemic collapse that it wouldn't be allowed to happen, and if it did our money would likely become worthless.

DavidAC

Are the banks seeking Govenment money safe? HBOS, LLoyds TSB etc. Surley the Govenment would not let them go bust. It would probably cost more in FSCS compensation than privatising them. I think they are to be part privatised early next year.

bjorn_again

JayTee99 wrote: »

Nothing to get over-concerned about, but needs to be mentioned before someone blows it out of proportion (maybe eeja?)

Did anyone see on the news today that Santander plans to raise $9.2 billion in a rights offer, after just a fortnight ago saying no need to raise capital?
i'm in no way alarmed by this, and not intending to make any changes,
Most banks are shoring up their capital positions, so should be seen in that light, i suppose

Santander needed capital so the sooner the better,'' said Arturo de Frias, an analyst at Dresdner Kleinwort in London who recommends buying the stock.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a0p7fKDJLSg0



No eeja, this DOES NOT MEAN Santander is going bust.
Trying to frighten people into your little offshore [strike]scams [/strike]schemes, eh?

ING took Euro 10bn off the Dutch Government a couple of weeks back. Imho that makes ING safer not weaker. What Govt. is going to allow a Bank to fold when it has a E10bn stake in it.

Masomnia

DavidAC wrote: »

Are the banks seeking Govenment money safe? HBOS, LLoyds TSB etc. Surley the Govenment would not let them go bust. It would probably cost more in FSCS compensation than privatising them. I think they are to be part privatised early next year.

The government money makes them as safe as anyone else. Even HSBC has been showing worse than you might expect results in the US, or so I read.

I doubt very much that there's enough money to compensate everyone in the case of one of these banks collapsing. So yeah the government would have no choice but to take them all over. It really isn't worth losing sleep over.

JayTee99_2

bjorn_again wrote: »

ING took Euro 10bn off the Dutch Government a couple of weeks back. Imho that makes ING safer not weaker. What Govt. is going to allow a Bank to fold when it has a E10bn stake in it.

Indeed!

also Barclays decided on a different route and went to the Middle East for funding, so it's horse for courses, i suppose,

as i said i have absolutely NO concerns about this whatsoever, but it needed to be mentioned precisely because of people like eeja hovering around these boards like a bad smell

but i also agree that it would be unthinkable of the Eurozone to allow such an important bank as Santander to get into trouble,

but that isn't what's happening here at all!!

eeja

JayTee99 wrote: »

Hah!! now you're showing your true colours of a scare-monger..

that isn't going to happen, it's fully under-written

The Santander-based bank will sell 1.6 billion new shares at 4.5 euros each in a fully underwritten offering, the company said today in a statement. Santander fell 5 percent to 7.92 euros in Madrid trading.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a0p7fKDJLSg0

.

Correct ...all such issues are underwritten (at great cost) ! That's why
I specifically wrote ''fail to raise the required amount from private investors.''
The underwriters still have to get rid of the stock if called upon to take it up.
As in Bradford & Bingley's case a huge amount of stock overhanging the market means lower share prices and in B& B's case eventually going bust .

eeja

bjorn_again wrote: »

Sure, anything can happen, but if Santander went to the wall I still believe as Masomnia says "the bit over £50k would be the least of our worries". The social consequences world-wide of Santander going down, would be beyond what the home Nation or the European Community would allow. Put it into perspective and imagine if Lloyds or Barclays were to fail, our Country would grind to a halt overnight. Never happen.

I agree wholeheartedly ....they will not disappear . The Spanish government would have to bail them out which in effect will mean nationalisation but going bust means going bust....I never indicated what would happen afterwards did I ?

innovate

why is everybody so confident that governments will continue to be able to bail out failing banks?

(not a loaded question, or attempt to scaremonger - - just genuinley would like to know the answer)