Spain's Bankia plunges on reports of massive withdrawals

chucky

brit1234 wrote: »

Really, that is why they bought failed British banks with bad loans? I wouldn't call that strong at all.

Can you back this up or can you provide a link to prove this?

The_J

brit1234 wrote: »

As the post above Santander has just been downgraded like the other banks. Now that will surely affect Santander mortgage holders here as they borrowing money internationally.

Santander UK has significant UK deposits and is looking for more (seen the adverts?)

You look, you save.
You buy silver, you save.
You buy gold, you save.
You go to uni and study risk, you save.
You become a copper, you save.
You try to understand economics, you fail.

brit1234

The_J wrote: »

Santander UK has significant UK deposits and is looking for more (seen the adverts?)

I don't fall for adverts and neither does Moody's it seems. Mood'ys has downgraded Santanders UK arm on top of the 16 Spanish Banks. Its rating is A2 a slight touch better than the main Spanish arm. Do the adverts say that, no.

The_J wrote: »

You look, you save.
You buy silver, you save.
You buy gold, you save.
You go to uni and study risk, you save.
You become a copper, you save.
You try to understand economics, you fail.

I don't see why. I have resources to mitigate the recession and take advantage when the time is right. I should be covered. I even have the luxury of being able to take a year out and fund my masters. Did I predict this would happen yes even when people disbelieved me back in 2005. The only thing I got wrong was the timescale/ desperate measures people have tried to keep this zombie economy going. All they have done is repeatedly kept kicking the can down the alley, now we have come to the wall.

I predict that Santander UK will be forced to hike mortgage rates as the cost of borrowing for them is higher than their rivals. I won't be putting my savings with them that is for sure.

The_J

Forgive me if I give the credit agencies the attention they deserve. If this -> O is the size of the as yet smallest undiscovered thing in the whole universe then the amount I care about them is this -> .

The credit agencies are a massive part of the reason we're in this !!!! up.

That's a pretty bold prediction. Rates are on a gradual increase as money markets rise (because even lenders who don't operate on the money markets aren't going to give their money away for a reduced amount) but Santander's rates are already quite high at the moment and have been for a number of months.

I have already predicted (I actually first mooted it to colleagues in January) that Santander were nervous about something due to seismic changes in criteria but I have heard, informally, that they will be targetting Q3 and Q4 for mortgage business.

Of course, I anticipate your gleeful response if they do increase rates and silence/denial if they reduce them. Of course, raising rates means absolutely F all because no-one is using them at the moment anyway :rotfl:

brit1234

The_J wrote: »

Of course, raising rates means absolutely F all because no-one is using them at the moment anyway :rotfl:

We are talking mortgage rates not BOE base rate, you being a Financial Expert I thought you would know the difference.:D

The_J

brit1234 wrote: »

We are talking mortgage rates not BOE base rate, you being a Financial Expert I thought you would know the difference.:D

It's so embarrassing how little you know. I read what I wrote. I read what you wrote. It's like trying to interpret what a dog is saying, it does not follow at all.

Let me explain in more obvious terms:

Santander are not competitive at the moment. They are not taking any business.
If Santander increase their mortgage rates (I still have no !!!!ing idea where you got BoEBR from), it will not raise money, no-one will continue to do any business with them.

Your only defensible argument was ambiguity. You should have claimed you were referring to their SVR, which as a non-professional would be a silly but fair mistake to make. That would have been a bold prediction. It's possible, but I don't think they'll do it.

chewmylegoff

brit1234 wrote: »

Really, that why there was Government intervention to broker the deal. Why would the Government intervene if there was nothing wrong.;)

The government did not broker the 2004 acquisition of Abbey by Santander there was no govt intervention at all. Abbey didnt need to be bailed out, it's shareholders decided that they would get a better return by selling their shares to santander. End of.

The government intervened in the 2010 failure of Bradford and bungled by nationalising its loan book and selling its branches and savings business to the highest bidder, which was Santander (through its uk subsidiary, abbey.

Just everyone else disagreed with you and they offered safe prudent financial advice. Where you were encouraging deeply indebt people to get into even more debt and stretch themselves.

I may not be a financial advisor but I am a qualified expert in risk, I could clearly see your advice was wrong and so did everyone else.

That thread is !!!!!!. Nothing really wrong with the "advice" you are complaining about. The OP asked if something was possible and was told on the basis of the information he had provided that yes it was possible. There was no "advice" given that it was an excellent risk-free idea, just that it was possible to borrow the amount required and that if the OP's info about disposable cash was accurate then the debt could be serviced and repaid.

Rich of you to complain about advice you personally dont like when you have a history of wading into threads in the house buying forum and "advising" people that they should not buy and instead wait for prices to fall when you really have not the first clue what is actually appropriate in their specific situation.




Advice is in quotes above as none of the purported advice is actually advice at all it is just the opinions of anonymous people on the internet.

chucky

brit1234 wrote: »

Really, that is why they bought failed British banks with bad loans? I wouldn't call that strong at all.

chucky wrote: »

Can you back this up or can you provide a link to prove this?

Can anyone help with this please?

Did Santander buy British banks with bad loans or is it something that Brit just made up as usual?

I best be careful Pobby or Johnny B will call this abuse

111KAB

Back to OP and Bankia!
As I now have an account with Bankia (didn't want it but was not given any alternative at the time) this is what I see in my 'local'. Obviously there are a lot of customers concerned regarding the stability and they are withdrawing money however, in addition, Bankia's charges have risen substantially over the past year causing customers to look around then go to an alternative.
In general we do not get 'free' (current) accounts in Spain. The norm is a monthly service charge, a charge for direct debits and debit cards and in some cases even a charge for deposits. On-line banking isn't as wide spread as UK so statements are usually sent in the post or you can collect from your bank but again there is a charge.
So, as these costs have escalated for Bankia there are a substantial amount of customers moving away.
My bank was Bancaja but due to goverment intervention they were forced into the Bankia establishment - so the movement of customers away from Bankia is not only due to their perceived instability it is also as a result of vastly increased charges.