Santander!!!!!!

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onfire2125
onfire2125 Posts: 5 Forumite
in Savings & investments
If and a big IF Spain leaves or is forced to leave the euro and then devalues. Would that effect my money in Santander UK????
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  • downshifter98
    downshifter98 Posts: 384 Forumite
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    No............
  • srcandas
    srcandas Posts: 1,241 Forumite
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    As has been said in previous threads Santander operate with each country operation being an independent island. The only circumstances under which there would be risk would be if Santander Spain illegally moved deposits in profitable countries to Spain in order to meet a bank run.

    1. I think this is being very closely watched and while I wouldn't trust Santander management I think they are more likely to move the head quarters to Brazil, and cut the spanish operation free to be nationalised.

    2. You have the BoE guarantee to £85k

    But if it worries you withdraw it and deposit it elsewhere. A few % interest is not worth a stroke ;)
    I believe past performance is a good guide to future performance :beer:
  • Fred_Bear_2
    Fred_Bear_2 Posts: 392 Forumite
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    I understand why the British government (taxpayer) guarantees deposits in British-owned banks, but why do we guarantee deposits in foreign-owned banks. I don't have an opinion on this because I do not understand economics - I am just curious.
  • srcandas
    srcandas Posts: 1,241 Forumite
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    Fred_Bear wrote: »
    I understand why the British government (taxpayer) guarantees deposits in British-owned banks, but why do we guarantee deposits in foreign-owned banks. I don't have an opinion on this because I do not understand economics - I am just curious.

    Because the role of the UK government is to protect its citizens. It does not offer the guarantee to protect banks.

    And these days banks like Santander, HSBC, Barclays are international. Remember when Obama waxed lyrical about British Pertroleum only to be reminded later that it is 44% US owned :D
    I believe past performance is a good guide to future performance :beer:
  • Naf
    Naf Posts: 3,160 Forumite
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    Fred_Bear wrote: »
    I understand why the British government (taxpayer) guarantees deposits in British-owned banks, but why do we guarantee deposits in foreign-owned banks. I don't have an opinion on this because I do not understand economics - I am just curious.


    Which British owned bank?

    As above: Santander's ring-fenced system means that customers deposited money cannot be moved between territories. Santander UK is effectively autonomous from Santander Spain, or Santander Brazil etc. The only money they can move about is the company profits.
    Never argue with stupid people, they will drag you down to their level and then beat you with experience.
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  • Fred_Bear_2
    Fred_Bear_2 Posts: 392 Forumite
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    Naf wrote: »
    Which British owned bank?

    I bank with the Co-op, Nationwide and HBOS. I assume you will say that British banks like HSBC have foreign shareholders - fair point.
  • srcandas
    srcandas Posts: 1,241 Forumite
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    Fred_Bear wrote: »
    I bank with the Co-op, Nationwide and HBOS. I assume you will say that British banks like HSBC have foreign shareholders - fair point.

    Fred I'd love to bank with the Co-op but there is no branch for miles. Recently I think they tried to buy a load of LloydsTSB branches but it fell through I think.

    Oddly the Royal Bank of Scotland is very English. If Scotland gets independance do you think a good English bank like RBS should move its HQ to England? :D:D Friends from up there, only bearbaiting, not being serious
    I believe past performance is a good guide to future performance :beer:
  • innovate
    innovate Posts: 16,217 Forumite
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    Fred_Bear wrote: »
    I understand why the British government (taxpayer) guarantees deposits in British-owned banks, but why do we guarantee deposits in foreign-owned banks. I don't have an opinion on this because I do not understand economics - I am just curious.

    It is not the British government that provides the guarantees. It's the FSCS that provides us with the £85K guarantees (and similar outfits in other EU countries, providing their citizens with a €100K guarantee)

    The FSCS is funded by the financial services industry.

    Of course, the financial services industry wouldn't do this unless forced to do so - - that's where the governments / banking licences come into play.
  • innovate
    innovate Posts: 16,217 Forumite
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    srcandas wrote: »
    Oddly the Royal Bank of Scotland is very English.

    It's very british - - owned 85% by the british taxpayer.
  • ChiefGrasscutter
    ChiefGrasscutter Posts: 2,112 Forumite
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    Actually the cost of guaranteeing personal deposits (the FSCS £85K) is reasonably small change - unlike larger corporate deposits which are not protected.

    No major UK operating bank/subsidiary would ever be allowed to collapse totally by a functioning UK government because of the effect it would have on the corporate sector - whose deposits are simply vast when compared to personal deposits.
    The Government would immediately nationalise/requisition it under their emergency powers

    Just think about it, huge corporations like Tesco, BP, rail companies, airlines, local councils plus their suppliers etc might suddenly find their current accounts inacessible - which would effectively stop all their business instantaneously.
    The effect that would have on the UK day to day economy with food not being delivered/supplied, travel and social services stopping etc etc would be nothing short of the arrival of the apocolypse.
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