Archive of topics from before June 2012. PM a mod to get one reopened.
  •  
  •  
  •  
By satnav
Membership Days Posts
#226977
Spanish banking crisis hits streets of Britain: Fresh fears for Santander's UK customers after credit rating blow

http://www.dailymail.co.uk/news/article-2146112/Spains-banking-crisis-rocks-Santander-UK-new-worries-British-customers-credit-rating-blow.html

Are headlines like these helpful or do they just help to cause members of the public to panic? I seem to remember that when Northern Rock was in trouble the Mail's reporting help to contribute to the surge of people queuing up to withdraw their savings.
 
By Arnold
Membership Days Posts
#226980
I'm with Cahoot (part of Santander). :(
Nowt to worry about if you read the whole article though.
Nevertheless, they can be confident that their deposits up to £85,000 are guaranteed by the British government should there be a loss of confidence.

Although it is a wholly owned subsidiary of Madrid-based Banco-Santander, the UK offshoot is regulated by the Financial Services Authority and would have access to Bank of England emergency funds in the unlikely case that it is threatened.

Senior UK regulators noted last night that Santander UK had more share capital and a better cushion of cash than the Spanish bank and it is hermetically sealed from the problems of the Spanish banking system.
By Fflaps
Membership Days Posts
#226985
As Arnold (and the article) point out, the UK Santander is a subsidiary and will be a different legal entity to the Spanish operation. Most readers won't read that far though. Or understand what it means.
By satnav
Membership Days Posts
#226987
The problem is that most Mail readers don't usually read beyond the headline or first couple of paragraphs.
By JuanTwoThree
Membership Days Posts
#227027
My bank is Bankia and they are deep in shit. But apparently the small Spanish saver is safe.

Let's hope that also applies to the tall fat British saver.
By Patrick100
Membership Days
#227050
More sober assessment from the Guardian.


Should I be worried about Santander?

The bank is keen to underline just how much it is ring-fenced from its Spanish operations. Santander's UK operation is wholly-owned by, but autonomous from, Banco Santander. It is authorised and regulated by the UK's Financial Services Authority (FSA) and a spokesman says it has its own balance sheet, separate from its parent company.

He also says 90% of the UK bank's balance sheet is UK-related money. "Sovereign exposures to Europe [excluding the UK] at 31 March 2012 were not significant, at less than 1% of total assets, and primarily related to Swiss government securities," he says. "Total exposure to eurozone periphery countries was less than 0.3% of total assets."

If the parent company wanted to extract money from the UK bank it would have to sell it or pay itself a dividend, but that would only be approved by the FSA if it met strict UK capital requirements. In short, this means if the Spanish part of the bank was in trouble it could not prop itself up with money extracted from the UK bank.

The spokesman says: "Both Santander and Santander UK are strong businesses focused on retail banking with no exposure to toxic financial products. Santander's UK business is strong and has a standalone credit rating which is one of the highest credit ratings of any UK bank."

Ray Boulger of mortgage brokers John Charcol says Santander is "probably the safest bank in the UK" because nearly all its savings and lending is in the UK. "If it gets very messy in Europe the knock-on effect is likely to hit other banks such as Barclays and Lloyds more than it would hit Santander," Boulger adds.



http://www.guardian.co.uk/money/2012/ma ... money-safe
By satnav
Membership Days Posts
#227056
The Mail have now changed the headline.

Santander's UK customers voice fears after Spanish banking credit rating blow

It's not clear how many of these customers started to voice fears after reading the alarmist story in the Mail.
 
By Malcolm Armsteen
Membership Days Posts
#227062
Piece at Zelo Street.

I wonder if the changes are due to some high-level legal threats?
 
By Arnold
Membership Days Posts
#227250
Spanish-owned bank Santander moved to reassure savers it was not in danger of collapse after its UK arm was downgraded by credit rating agency Moody’s.

http://www.dailymail.co.uk/news/article ... z1vK0XMt8d
Remind me. Which paper tried to disassure (is that a word?) people yesterday?
 
By Malcolm Armsteen
Membership Days Posts
#227252
Classic tabloid:
Day 1 - start panic
Day 2 - reassure public that there's no need to panic, probably because said tabloid persuaded Yoorop to change their minds...

Also known as the Hacker-emulsified offal tube manouevre.
By Patrick100
Membership Days
#227288
Arnold wrote:
Spanish-owned bank Santander moved to reassure savers it was not in danger of collapse after its UK arm was downgraded by credit rating agency Moody’s.

http://www.dailymail.co.uk/news/article ... z1vK0XMt8d
Remind me. Which paper tried to disassure (is that a word?) people yesterday?


Reassurance buried again in the some print, not in the headline which is still grim.

Britain could be plunged into another credit crunch if Greece leave the euro... and this time we may never recover, warns finance chief
SPOTY

Jim Davidson once described the Olympics as "[…]

If that poll lead is accurate it wouldn’t […]

Liz Jones

A calibrated (sic) attack on Jo Cox by a lady who […]

News you won't see on the BBC

Was chatting with an old friend today, and we wang[…]