Are Spanish banks that much better?

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This topic contains 13 replies, has 11 voices, and was last updated by Profile photo of Paul Paul 8 years, 1 month ago.

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  • #54354
    Profile photo of Anonymous
    Anonymous
    Participant

    US banks are falling like Autumn leaves. UK banks tumble. Benelux and Iceland banks are
    dropping.

    I have not heard about any Spanish bank falling. What is the secret???

  • #86525
    Profile photo of Anonymous
    Anonymous
    Participant

    I have not heard about any Spanish bank falling. What is the secret???

    Judging from the way Spain covers all things bad up, it’s probably precisely that…a well kept secret! 😉
    The Spanish economy is on it’s knees and developers must owe the banks millions. Watch this space.

  • #86526
    Profile photo of Anonymous
    Anonymous
    Participant

    “Judging from the way Spain covers all things bad up, it’s probably precisely that…a well kept secret! 😉
    The Spanish economy is on it’s knees and developers must owe the banks millions. Watch this space.”

    I am sure Spain will have the mother of all crashes, but it is amazing that it is still holding well as of October 2008…

  • #86527
    Profile photo of angie
    angie
    Spectator

    The fact that Spain appears to be ‘holding well so far’ is probably due to the fact that Spain is covering the cracks up, not revealing all, and even misleading the public which they seem great at doing.

    Ireland are officially the 1st Eurozone economy in recession, Spain is likely to be the next and one of the largest. Zapatero, Solbes and the like have pretended it’s not happening, a crash is very likely officially.

  • #86546
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    @flosmichael wrote:

    US banks are falling like Autumn leaves. UK banks tumble. Benelux and Iceland banks are
    dropping.

    I have not heard about any Spanish bank falling. What is the secret???

    The bank of Spain did not allow spanish banks to go for structured investment vehicles (SIVs).
    Also many spanish banks spread their risks by having invested not only in the USA but also in south america, etc…

  • #86548
    Profile photo of Anonymous
    Anonymous
    Participant

    Don’t confuse Santander with other Spanish Banks. The Bank managed by the Botin & his family. A very shrewd and traditional family bankers.

    Santander has always bought very wisely the fact that they have paid
    £600, million for deposits of £21billion.

    On a lighter note one of the Botin’s sister was married to the golfer Sevi Ballestaros.

  • #86555
    Profile photo of Anonymous
    Anonymous
    Participant

    “The bank of Spain did not allow spanish banks to go for structured investment vehicles (SIVs).
    Also many spanish banks spread their risks by having invested not only in the USA but also in south america, etc…”

    That is the official line and one I find very hard to believe. If the law does indeed stop them from from investing in SIVs then I’m sure that they use foreign entities to invest in them. Or they acquire foreign entities who have already invested in them. Or the bankers restructure the SIVs and give them a new name, rate them AAA, so that the Spanish banks can get around the law.
    Am I really supposed to believe that while the rest of the world plowed into the American subprime market, the Spaniards passed up the opportunity of ‘easy money’?
    With regard to the question as to why Spanish banks are not yet failing there are two major reasons. Firstly, the European business cycle is generally held to be behind the American cycle. Secondly, the laws require far less transparency and honesty in Spain than they do in America. I know that may sound hard to believe but the legal structure and accountancy requirements in business in the US is far more rigorous these days. It was only due to a change in the law last year that required US firms to admit to their toxic debts.
    Spanish banks coming unscathed out of the current crisis is as likely as the price of Spanish property doubling before the year end…

  • #86556
    Profile photo of Anonymous
    Anonymous
    Participant

    Don’t forget all those Bank Guarantees. These alone may topple some Spanish Banks. Are these not the equivalent of an SIV but in another disguise? Will the banks be left holding worthless property?

  • #86671
    Profile photo of Anonymous
    Anonymous
    Participant
    maximus wrote:
    Don’t forget all those Bank Guarantees. These alone may topple some Spanish Banks. Are these not the equivalent of an SIV but in another disguise? Will the banks be left holding worthless property?[/quote)

    Interesting article in the FT Lex column

    http://www.ft.com/cms/s/1/b3380d82-9303-11dd-98b5-0000779fd18c.html

  • #86675
    Profile photo of Anonymous
    Anonymous
    Participant
  • #86726
    Profile photo of Anonymous
    Anonymous
    Participant
    Fuengi wrote:
    flosmichael wrote:
    US banks are falling like Autumn leaves. UK banks tumble. Benelux and Iceland banks are
    dropping.

    I have not heard about any Spanish bank falling. What is the secret???

    The bank of Spain did not allow spanish banks to go for structured investment vehicles (SIVs).
    Also many spanish banks spread their risks by having invested not only in the USA but also in south america, etc…

    I would have thought South America is the last place on the planet where one should be invested.

  • #86737
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi,

    Caught a small news item on Bloomberg about Spanish government bailing the banks out with 68 billion euros (might have been pounds). Didnt catch it all.

    Bernard

  • #86740
    Profile photo of Anonymous
    Anonymous
    Participant
    flosmichael wrote:
    US banks are falling like Autumn leaves. UK banks tumble. Benelux and Iceland banks are
    dropping.

    I have not heard about any Spanish bank falling. What is the secret???

    Latest up date from DAILY TELEGRAPH.

    http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/3154192/ECB-sees-crisis-of-enormous-proportions-as-Spain-creates-mortgage-rescue-fund.html

  • #86936
    Profile photo of Paul
    Paul
    Participant

    Investors may need to watch their deposits now even in Spanish Banks as an article in the Sunday Times says that Philip Falcone, the American hedge-fund manager who made a killing by betting against HBOS shares has now targeted the Santander Group which includes the Abbey, A & L, and B & B in the UK. Just last week they built up a 208 million euro short position in Santander. Shorting is not banned in Spain as in the UK and US.

    They’ve also done the same with BBVA and Banco Popular, Spain’s next 2 largest Banks. Lansdowne Partners and Fidelity International have also shorted these Banks.

    Spanish Banks are heavily exposed to Spain’s plummeting housing and construction markets.

    Don’t have more than the new Spanish Bank Guarantee limit, you could end up losing it.

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