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.
“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…
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.
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…
“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…
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?
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)
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.
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.
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.
Author
Posts
Viewing 13 reply threads
The forum ‘Spanish Real Estate Chatter’ is closed to new topics and replies.