September 29, 2008 at 11:21 am #54353
Would you trust your savings being transfered to the Spanish Bank ,Santander or would you move it elsewhere? (…like under your matress 😉 )
September 29, 2008 at 11:38 am #86515
Claire. personally I wouldn’t trust my savings with Santander Bank or any of their aquisitions, they may be large but I think they have and are taking on too much with Abbey, A & L, and now B & B, there is a lot of bad mortgage debt being taken on by them as well as all their defaults in Spain with customers inc. construction clients.
I wouldn’t be surprised to see them go pearshaped later, it’s costing them a fortune despite picking things up cheaply.
September 29, 2008 at 11:55 am #86517
I have recently opened an account with Santander. Judging by their share price, the market thinks they are one of the safest banks around today. For example, over 12 months Santander is down 16% compared to 39% for Barclays, 56% for Lloyds, and a whopping 62% for UBS. Based on share price, which in theory tells you all you need to know, Santander is one of the best performers amongst big international banks.
Then again, in these crazy times, you can’t be confident about anything. One minute flying high, next minute in the ditch. Every day the news gets more shocking.
Santander may do okay, but the same can’t be said about quite a few other Spanish banks, especially savings banks. There may be trouble ahead….
September 29, 2008 at 1:02 pm #86519
Mark, the very fact that the market thinks they are safe would worry me, after all what do the market know in these times? They’ve so often got it totally wrong. It’s often said that people should do the opposite of what the market thinks as so many pundits talk markets up or down to suit their own positions.
IMO, Santander have taken on too much and might come a cropper later, as Claire says ‘maybe put your money under the mattress’.
Santander may be exposed to a lot of Spain’s financial problems with construction, what might come out of the woodwork?
September 29, 2008 at 1:27 pm #86524
Bank shares plummeted this morning on opening of the London Stock Exchange. I don’t know if they have since picked up. Obviously the market was not confident about the week-ends activities in the USA an UK. trying to bail these financial institutions out, with taxpayers money. 🙄
September 30, 2008 at 8:58 am #86559
I might be worth considering that up to £35,000 of your savings is covered by guarantee in the UK with respect to a UK bank failing.
Overseas banks do not have the same guarantee.
I would deposit my money in the UK, and even spread it around if a large sum.
Personally, I can sleep easy knowing my £199.65 deposit is safe at Lloydstsb. 🙂
September 30, 2008 at 9:43 am #86561
yes, i really feel for these poor souls who have £100,000 or more in savings, and have to spread it out between THREE banks or more?
It’s a tough old world out there!
September 30, 2008 at 9:59 am #86563
Trouble is your coverage is only with one institution so if you had £35k in each of the banks owned by Santander eg Abbey, (not sure if cahoots counts as seperate account) A&L, and now B&B deposits thats possible £140k exposure only £35k protection and as more banks get taken over the situation will worsen
September 30, 2008 at 10:42 am #86566
Yer – my heart bleeds 😆
I hadn’t thought of that. You’re right and soon there’s only going to be one bank left. 🙄
September 30, 2008 at 11:04 am #86567
just think if you had millions? How hard could life get!
September 30, 2008 at 11:05 am #86568
My understanding is like Mark’s, that Banco Santander is one of the safest Spanish banks with considerable overseas earnings and comparatively little exposure to its domestic market. In respect of the first point it is like HSBC which although lost money on toxic investments is one of the best UK banks. However one can never say any institution is 100% safe even the UK government whose debt is AAA rated.
It seems to me the Financial Services Compensation Scheme (FSCS) that provides cover for £35,000 per depositer in the event of insolvency of a bank is largely irrelevant. It will only come into play if a retail bank is allowed to fail. The government fearing another Northern Rock with investors queuing around the block to withdraw cash is simply unwilling for this to happen, for the sake of its own reputation for prudent management of the economy as well as the potential domino effect. Logically it means all your savings are “safe” for now.
September 30, 2008 at 12:48 pm #86573
just think if you had millions? How hard could life get!
I working on it; trouble is my numbers just don’t seem to come up!
Still, they say money doesn’t make you happy 🙄
I hear that The Irish Government is providing a guarantee for 100% deposits. I guess there wil be a huge transfer of funds from around the World into these banks.
September 30, 2008 at 1:07 pm #86574
I’m not sure if this is allowed by Mark or not, but here goes. It’s worth a read.
September 30, 2008 at 1:23 pm #86576
Banks operating in UK are covered by the deposit scheme. Foreign or not.
September 30, 2008 at 1:30 pm #86578
Shakeel that is true but foreign banks may have a compensation scheme in their own country which would be topped up by the Financial Services Compensation Scheme (FSCS) to £35,000. For example for Icelandic banks the first 20,887 Euros or Sterling equivalent is covered by their deposit protection scheme. In the event of insolvency of an Icelandic bank a claim would have to be made to both schemes.
September 30, 2008 at 8:20 pm #86581
On a lighter note I found this post on another forum
“Following the problems in the sub-prime lending market in America and the run on Northern Rock in the UK, uncertainty has now hit Japan.
In the last 7 days Origami Bank has folded, Sumo Bank has gone belly up and Bonsai Bank announced plans to cut some of its branches.
Yesterday, it was announced that Karaoke Bank is up for sale and will likely go for a song while today shares in Kamikaze Bank were suspended after they nose-dived.
While Samurai Bank are soldiering on following sharp cutbacks, Ninja Bank are reported to have taken a hit, but they remain in the black.
Furthermore, 500 staff at Karate Bank got the chop and analysts report that there is something fishy going on at Sushi Bank where it is feared that staff may get a raw deal.”
October 1, 2008 at 7:05 am #86582
Like it 😀 😀 😀
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