Re: Re: Any good news or opportunities

#108479

peterhun
Participant

@dbmarcos99 wrote:

Another positive article, although it may surprise those who claim Santander are due a fall purely because they are a Spanish outfit.

Botin predicts profits to rise 50% in next two years

The mere fact they are profitable indicates they are taking risk.

Banks make a profit by being highly leveraged, it can swing the other way and wipe them out in an instant. Then they get dragged into a negative feedback loop, falling share price = falling capitalization = falling share price. The end result is like Barclays bank, profitable but withing hours of nationalization.