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German Government To Bail Out Satander

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Looks like Santander got nervous about the new British governments willingness to bail out the banks:

http://news.bbc.co.uk/2/hi/business/10594638.stm

They've panicked and lined up the Germans to bail them out as well now.

Spanish bank Santander has signed an agreement to buy Swedish bank SEB's German business for 555m euros (£466.5m, $699m).

The sale represents around a quarter of SEB's business and will double the size of Santander's German branch network.

SEB has 173 branches in that country and one million customers.

It wants to concentrate on merchant banking and wealth management in Germany.

Santander's acquisition is its second major attempt at expanding its branch network in a month.

In June, Santander submitted an offer to buy the UK's Royal Bank of Scotland's (RBS) Williams & Glyn's subsidiary.

RBS is selling the unit - which includes 318 branches - after the European Commission ruled last year that it must dispose of the business as a condition of being bailed out by the UK government.

Santander already has a substantial presence on the UK High Street having bought Abbey National, Alliance & Leicester and Bradford & Bingley in the past two years.

What's the betting this was an all-share purchase again?

Edited by TaxAbuserOfTheWeek

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Looks like Santander got nervous about the new British governments willingness to bail out the banks:

http://news.bbc.co.uk/2/hi/business/10594638.stm

They've panicked and lined up the Germans to bail them out as well now.

What's the betting this was an all-share purchase again?

Santander should carry on buying all the turds and then we should let them go pop, a good way of cleansing the banking system.

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Santander should carry on buying all the turds and then we should let them go pop, a good way of cleansing the banking system.

Ah, but then they would be too big to fail! ;)

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Perhaps Santander have realised the UK is bust and is looking for someone else to pick up the tab?

To be fair getting the Germans to foot the bill is a sensible move, I'm sure the German taxpayer will be relieved.

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To be fair getting the Germans to foot the bill is a sensible move, I'm sure the German taxpayer will be relieved.

I am sure they will be more than pleased to bail out one of Europes largest banks. In fact there is nothing the German taxpayer would rather do. Is there?

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Ah, but then they would be too big to fail! ;)

See, NOW you're getting it.

Why else do you think they bought banks that gave them a 50% share of the UKs mortgage market. Santander is a Spanish bank. The Spanish government has no money to bail them out, and can't. Britain can print.

Santander can do 2 things:

1) Force a cash bailout to avoid the complete collapse of the UK mortgage market including a hard line on repos. (HPI Armageddon!)

2) Force the UK Gov to BUY Abbey etc back again with a hefty profit for Santander. Remember, Santander paid for the UK banks it bought with SHARES.

Either way, the British government would have to print pounds and then SELL THEM FOR EUROS in order to pay Santander off.

This would wreck the £ v € f/x rate and push the country into an inflationary depression.

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See, NOW you're getting it.

Why else do you think they bought banks that gave them a 50% share of the UKs mortgage market. Santander is a Spanish bank. The Spanish government has no money to bail them out, and can't. Britain can print.

Santander can do 2 things:

1) Force a cash bailout to avoid the complete collapse of the UK mortgage market including a hard line on repos. (HPI Armageddon!)

2) Force the UK Gov to BUY Abbey etc back again with a hefty profit for Santander. Remember, Santander paid for the UK banks it bought with SHARES.

Either way, the British government would have to print pounds and then SELL THEM FOR EUROS in order to pay Santander off.

This would wreck the £ v € f/x rate and push the country into an inflationary depression.

Santandare could go bust of course.

someone has to.

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See, NOW you're getting it.

Why else do you think they bought banks that gave them a 50% share of the UKs mortgage market. Santander is a Spanish bank. The Spanish government has no money to bail them out, and can't. Britain can print.

Santander can do 2 things:

1) Force a cash bailout to avoid the complete collapse of the UK mortgage market including a hard line on repos. (HPI Armageddon!)

2) Force the UK Gov to BUY Abbey etc back again with a hefty profit for Santander. Remember, Santander paid for the UK banks it bought with SHARES.

Either way, the British government would have to print pounds and then SELL THEM FOR EUROS in order to pay Santander off.

This would wreck the £ v € f/x rate and push the country into an inflationary depression.

The UK govt could just nationalise the UK part of Santander (legally it has to have separate capital held here in the UK not in Spain) just like they did with Northern Rock, Bradford and Bingley and tell Santandar Spain to piss off with no money at all.

How much did the shareholders of NR and B&B get from the UK govt.

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The UK govt could just nationalise the UK part of Santander (legally it has to have separate capital held here in the UK not in Spain) just like they did with Northern Rock, Bradford and Bingley and tell Santandar Spain to piss off with no money at all.

They asked for help, it wasn't forced upon them. They could have said no and liquidated but they hope the gov would bail them out and leave the shareholders intact.

How much did the shareholders of NR and B&B get from the UK govt.

They were hoping that the gov would cough up. It was a gamble. No-one will take that gamble next time.

Next time the gov pays Santander off or the UK house market gets a bullet in the head.

Santander isn't just Abbey. It's Abbey, Alliance & Leicester, Northern Rock and Bradford and Bingly merged together.

Imagine if the bank that holds most of the UKs high LTV/risk mortgages suddenly started to be less friendly and stop letting people off being 4 months behind.

Imagine if the issued repo papers automatically on day 90 then sent the houses straight to auction before even waiting for the paperwork to come through.

Imagine no reserve.

Imagine the debtors being told their negative equity will NEVER be written off.

or

Imagine the UK government caving in, QEing an extra few hundred billion and buying the banks back for twice what Santander paid for them.

Which sounds most likely to you?

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They asked for help, it wasn't forced upon them. They could have said no and liquidated but they hope the gov would bail them out and leave the shareholders intact.

They were hoping that the gov would cough up. It was a gamble. No-one will take that gamble next time.

Next time the gov pays Santander off or the UK house market gets a bullet in the head.

Santander isn't just Abbey. It's Abbey, Alliance & Leicester, Northern Rock and Bradford and Bingly merged together.

Imagine if the bank that holds most of the UKs high LTV/risk mortgages suddenly started to be less friendly and stop letting people off being 4 months behind.

Imagine if the issued repo papers automatically on day 90 then sent the houses straight to auction before even waiting for the paperwork to come through.

Imagine no reserve.

Imagine the debtors being told their negative equity will NEVER be written off.

or

Imagine the UK government caving in, QEing an extra few hundred billion and buying the banks back for twice what Santander paid for them.

Which sounds most likely to you?

Option three

They will QE 200billion to recapitalise Santander UK , nationalise it and pay Santander ZERO. Just like they did with Northern Rock.

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Option three

They will QE 200billion to recapitalise Santander UK , nationalise it and pay Santander ZERO. Just like they did with Northern Rock.

Sounds most likely to me.

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I remember reading that Swedish banks were bricking themselves, coz of collapse in housing markets around Baltic states ie Estonia/Poland and other nearby countries, in case of mass default on loans.

Something dodgy is going on?

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I remember reading that Swedish banks were bricking themselves, coz of collapse in housing markets around Baltic states ie Estonia/Poland and other nearby countries, in case of mass default on loans.

Something dodgy is going on?

whats the problem?...they just use this collateral to borrow from the ECB to buy greek bonds and dump on the ECB.

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  • 150 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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