September 20, 2007 at 3:40 am #53158
……….Is going to be felt in the mortgage/banking sector, very soon!
However we define ‘sub prime’ I wonder how big the Spanish banks exposure is (both as a loan originators and the buyers of debt loaded investment vehicles)?
David Taguas, the prime minister’s chief economic adviser, said: “To talk about severe adjustments or a meltdown in prices is ridiculous. That sort of crisis is unthinkable. We have…one of the most efficient financial systems in the world. That’s insurance in times of turbulence.”
I assume Mr Tagus (Spains chief economic adviser) in the news item below, is talking about Spanish Mortgage/Banking stock prices and regulation there of. If the Spanish ‘financial systems’ he is referring to are even close to being run like their building, planning and legal systems, there will be big trouble ahead.
I predict big trouble as we are only at the beginning of the Global credit crunch brought about by lax lending and a failure to recognise and price risk effectively, over the last 6 years or so.
September 20, 2007 at 8:05 am #75137
[quote=”Pablo Silver or Lead
If the Spanish ‘financial systems’ he is referring to are even close to being run like their building, planning and legal systems, there will be big trouble ahead.
Couldn’t agree more.
“Insurance in times of turbulence.” – They make the problems sound like an Act of God, rather than taking responsibility.
September 20, 2007 at 10:08 am #75149
Spanish Banking system. I am afraid does get run like the building industry. As the two industiries are different in nature but I am afraid the ethos are the same. Not providing service and charging as much as they can.
1) No body can say for certainity, when the Branch will be open or not. summer/winter times, saturdays in summer is a real lottery. National holidays, regional holidays, local fiestas to add on.
2) Nobody can be sure if staff that you need to speak will be there or not.
3) Certain transation can be carried on certain days e.g IBI payments.
4) Exhorbitant, bank charges for paying in a cheque. I paid in a cheque for €200,000 and the brach wanted to charge me nearly €600. The cheque would have gone through the same mechanics if the cheque was €20.
5) The Bank do not adhere to charges laid out by EU. bit like the land grab in Valencia.
6) O/d ficilitiies not extended to non EU members, even where the account holder has a mortgage with the Bank with more than adequate equity.
7) Punative exchange rate margins.
8) Letters not replied, despite of reminder.
9) Incorrect deductions not credited.
10) suppourting documents to transaction not held at the branch. When rquested not provided.
11) Bank errors left to be sorted out by the account holders.
12) Cheques or overseas credit lost in the system for 7 to 8 weeks.
13) Standing order paid before due dates.
14) Poor communications between correspondent banks
An EU report on Banking and Finance a few years ago found Spanish & Portguese Banks to be the most eneffecient banks in the EU
If you speak to Spanish to find out his/her reasons to open a bank account at a particular branch. It will always be distance from home and if you ask them what about product, charges, service etc. They look at you
if you are from another planet. Well you may be in Banking terms.
September 21, 2007 at 6:59 am #75164
‘Asked yesterday where we should be looking for the next casualties of the credit crunch, the head of one of London’s biggest investment banks was unequivocal: Spain.’
October 1, 2007 at 8:07 pm #75351
I have a mortgage with deutschebank in Barcelona and the mortgage was arranged through a broker recommended by this website.
My “personal advisor” does not speak english i do not speak spanish, there have been charges for late payment of my spanish mortgage but the money has left my uk bank by special instruction and three day arrival, shows on my statements etc.
I have not had a deutscebank cash card since the one i used in UK 4 months ago was kept by my high street uk bank , several emails and calls to deutscebank and still no card.
Have complained to HQ in germany , no response, monie shas gone missing for several months, my interest on mortgage has gone up no letter and no explanation of why.
Deutschebank email and letters are in very very very poor english, be warned dont go to deutschebank, anyone have any suggestions for a very good spanish bank, or is halifax or santander best/
I am now refusing to pay the mortgage on tiem but always late, i am switching from resident to non resident to resident again, if tey want tto mess me about and charge me high fees then i am going to make the barcelona branckh work for their money,a s for the “broker” recommended by this site he will be getting a earful when i next go to barcelona and look him up.
I am thinking of buying in Argentina, too much corruption and high taxes in spain, smelly dirty towns, over development, to many laregr lout brits, too much dirt pile don side of road and not landscaped, too many chavs, too many negative things about banks, developers, british estate agents etc, never thought i would ever buy anywhere than spain, but argentina here i come, very cheap cost of living, vey good life for a few pounds, and free flights if you use american express, i recommend timothy ferris book, the 4 hour workweek.
long live argentina, spain is on the decline.
October 2, 2007 at 11:56 pm #75388
If you think Argentina is less corrupt, you deluding yourself.
October 3, 2007 at 8:09 am #75394
With respect what planet are you on. 😀
October 3, 2007 at 8:37 am #75395
My brother-in law is married to an Argentinian. He has 2 daughters, 2 grandchildren and has lived in Buenos Aires for 23 years. Corruption is rife, down to the core.
October 3, 2007 at 9:04 am #75396
I can understand Swansea’s frustration but, as far as corruption is concerned, I too wonder if it is a case of ‘out of the frying pan into the fire’.
In the 2007 Corruption Perceptions Index http://www.transparency.org/policy_research/surveys_indices/cpi Spain gets a score of 6.7 while Argentina has a score of 2.9. As you may guess a low score indicates higher levels of perceived corruption. For interest the UK has a score of 8.4. It measures ‘perceived’ corruption but corruption is difficult to measure any other way and the score is well respected.
I know Mexico fairly well, and have seen police and government officials openly accepting bribes routinely, and even they have a score of 3.5! So perhaps on the way to the airport to go to Argentina you should pick up plenty of brown envelopes.
However, Argentina for the landscape and air, well perhaps Swansea has a point :D.
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