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What Are The Chances Of Santander Going Bust?

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I read this last week

Glass Steagall Today, Before Its Too Late

Britain's banks are bankrupt. They are trading while insolvent, and in this country at least, that is illegal. The British establishment is owned lock, stock and barrel by these banks, and so nothing is done. They have already taken us very close to the point of no return, and the financial collapse is only one symptom of their fraudulent thinking.

published recently in the paper edition of the UK Column, this stage of the process began in 1971, with the double whammy of the "Nixon Shock", where President Nixon unilaterally cancelled the US Dollar's link to gold that essentially ended the Bretton Woods system of international financial exchange, combined with Rothschild's formation of the Inter Alpha Group.

The Inter Alpha Group is a cartel of European banks, including the Royal Bank of Scotland, AIB and ING among others. The most notable name in the list is Santander. Notable because it is exhibiting the greatest symptoms of bankruptcy.

As a result of that bankruptcy, Santander has been sucking the blood out of any and all profitable assets the banking system may still have through mergers and acquisitions, in an vain effort to stay afloat.

For example, lets take the case of Allied Irish Bank. AIB, also an Inter Alpha Group member, is also insolvent. It went cap in hand recently to the Irish Government for bailout money. The Irish Government, in their emminent wisdom, told AIB that they could have bailout money, but that they would have to attempt to raise as much capital for themselves first, as a condition of it.

As a result of that condition, AIB sold the only profitable portion of its operation - its wholly owned Polish subsidiary, Bank Zachodni WBK to Banco Santander. AIB then qualified for bailout by the Irish taxpayer. AIB was asset stripped, leaving the bankrupt empty shell, on the backs of the Irish. Job done.

Santander has done the same in the UK, sucking the final embers out of Bradford and Bingly, Alliance and Leicester, and Abbey, as well as the hight street branches of RBS and Natwest in Scotland.

It seems, though, that none of this has been enough to save Santander, which has had to announce a 26% drop in its third quarter "profits." The bank had to write off around €400 million in bad debts during the quarter as a result of new bank accounting rules in Spain, and it has announced a floatation of 20% of its UK arm in an attempt to raise €3 billion.

Santander is merely the leader on the way to hell, as Greek, Irish and other Spanish banks follow quickly behind. All are on European Central Bank life support machines - isn't it time these were switched off?

As Bloomberg recently reported, Spanish, Irish and Greek banks took 61% of the loans supplied by the ECB in September, which was 50% up on August. Why? Because no-one wanted to invest in their bonds.

All this resulted in last week's agreement, led by the Cabbage Patch himself, to make changes to the Lisbon Treaty which will create a permanent bailout mechanism to "preserve the stability of the euro."

The truth is that we are at the end of the road with the current financial system. Those setting policy are bent on destroying our nations, asset stripping them, "normalising" living standards globally and imposing global governance. So they continue to actively push the collapse, which is not limited to the financial system. Food supplies, energy, roads, rail - all our key infrastructure necessary for maintaining our population is collapsing at an accelerating rate. In the case of food, we are already using food reserves in order to feed ourselves today.

This is the worst depression the world has known. As I have said many times before, it is similar in nature to the breakdown that occurred in Germany in 1923, except this time, there are no national boundaries to contain it.

The Solution - Glass SteagallThe Banking Act of 1933, known as the Glass-Steagall Act, was American legislation which introduced post-depression banking reforms, designed to control speculation. Its repeal effectively removed the separation between investment banks and high street banks, and paved the way for the speculation which brought about the present financial collapse.

There are more calls daily for the reinstatement of Glass-Steagall type banking regulation, mainly in Europe.

In Austria, the financial spokesman for the Freedom Party of Austria (FPOe) parliamentary group, Lutz Weinzinger, said his party is in favor of a banking system like the one that was introduced as a reaction to the 1929 stock market collapse:

It should concretely result in a split between commercial bank activities and investment bank activities ... It is a matter of protecting them [the commercial banks], because they provide deposit, credit functions, and safe money-transfer operations - customer-oriented services with low risk and modest profits ... In the future, investment banking firms should be like all firms, and in case of failure, they should be out of the economy, lest they jeopardize the functionality of 'basic banking.'

In Switzerland, Konrad Haedener, a Thun city council member, posted a call for Glass-Steagall on his blog on Oct. 3. The statement reads:

We need regulatory interventions in the financial economy, namely the partition of today's universal banks into a separate banking system, where payments, credit and mortgage loans, capital management, and investment banking are separated again. The U.S.A. had such a regulation in the Glass-Steagall Act, as a lesson from the 1929 stock market crash and the resulting Great Depression. After the lifting of this split-system in 1999, the problems started in the U.S.A., which led the country and partly also Europe into the serious crisis in the financial and real economy, which we are still in.

As a result earlier this week I closed my account with Santander and moved to Nationwide.

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This is a timely reminder to me too...

Be transferring my money to Smile (Co-op) tomorrow.... if they'll let me that is.

I've been with Smile for over 10 years (pretty much joined up as soon as they started).

Not sure if you've been with them for long but I've been really happy with their service. And apparently an ethical bank to boot!

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Not sure if you've been with them for long but I've been really happy with their service. And apparently an ethical bank to boot!

My Mrs did some research and came up with Triodos for ethical banking and they SEEM ok stability wise to me - any thoughts?

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Anyway if Santander did have any problems won't the Bank of Theft from Savers in England help them out? After all the Santander Chief Executive António Horta-Osório is a non-executive director until the day before he takes over at Lloyds:

Following his appointment as Chief Executive of Lloyds Banking Group with effect from 1 March 2011, it has been mutually agreed by Mr Horta-Osório and the Court of the Bank of England that, because of possible conflicts of interest, it would be inappropriate for him to remain as a Non-executive Director of the Bank of England from that date. He will therefore cease to be a Non-executive Director of the Bank on 28 February 2011.

Sir David Lees, Chairman of the Court of the Bank, said, “António Horta-Osório has contributed strongly to the workings of the Court of the Bank of England since his appointment on 1 June 2009. I would like to take this opportunity on behalf of his colleagues and myself of thanking him for his considerable efforts and wishing him every success in his new role.”

Mr Horta-Osório said, “It was an honour to be appointed to the Court of the Bank of England. I have been privileged to work with such a high-calibre group of colleagues and to be able to contribute to the significant work done by the Court. During this time, I have been very impressed by the culture of the Bank’s different teams, their dedication, hard work, professionalism and strong ethics.”

Note for Editors

Appointments of non-executive directors to the Court of the Bank of England are made by Her Majesty the Queen on the advice of the Prime Minister and the Chancellor of the Exchequer.

http://www.bankofengland.co.uk/publications/news/2010/086.htm

Does anyone know if there any other members of the Inter-Alpha Group working for central banks?

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Santander bought around half the UK mortgage market in the form of Abbey Notional, Northern Wreck and Bradford and Bungle.

With such a huge share of the market, the British Government would HAVE to bail them out, either with cash or by buying the british banks back for far more then santander paid.

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I've been with Smile for over 10 years (pretty much joined up as soon as they started).

Not sure if you've been with them for long but I've been really happy with their service. And apparently an ethical bank to boot!

Not had any problems with Smile in the 8 years I've been with them, apart from being a bit keen to block my card every time I used it abroad without telling them... prefer them this way though.

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Santander bought around half the UK mortgage market in the form of Abbey Notional, Northern Wreck and Bradford and Bungle.

With such a huge share of the market, the British Government would HAVE to bail them out, either with cash or by buying the british banks back for far more then santander paid.

Didn't Santander just buy the deposits at Bradford and Bungle? I thought the mortgages were hived off to Northern Wreck?

I hope the Bank of Theft from Savers in England weren't involved in that decision - what with the Chief Executive of Santander being a non-executive director. A cynical person might think....

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Santander have been penciled in for after Portugal. The piigs are to be slaughtered in a strict order. ;)

Greece -> Ireland -> Portugal -> Spain -> Italy.

"GIPSI"

Nice.

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Santander bought around half the UK mortgage market in the form of Abbey Notional, Northern Wreck and Bradford and Bungle.

Abbey Notional.

Like it. :lol:

To think that, before 'light touch regulation' (© Gordon Brown) building societies were such solid institutions.

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I'm going to have to post this again because nobody ever picks up on the thing that intrigues me about it

Following his appointment as Chief Executive of Lloyds Banking Group with effect from 1 March 2011, it has been mutually agreed by Mr Horta-Osório and the Court of the Bank of England that, because of possible conflicts of interest[/b], it would be inappropriate for him to remain as a Non-executive Director of the Bank of England from that date. He will therefore cease to be a Non-executive Director of the Bank on 28 February 2011.

Somebody please....?

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Didn't Santander just buy the deposits at Bradford and Bungle? I thought the mortgages were hived off to Northern Wreck?

I hope the Bank of Theft from Savers in England weren't involved in that decision - what with the Chief Executive of Santander being a non-executive director. A cynical person might think....

I thought that was the case, pretty sure they only got the savers and presumably a lot of the branches, but not the mortgage book. Dunno about unsecured loans and credit cards (If they did any).

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I don't think Santander account holders have anything to worry about, they're too big to fail. The ECB/BoE will print as much as is required to return pieces of paper with numbers on them to depositors. Fear not.

The BoE will bail them out printing whatever money is needed.

Santander pulled off an amazing con. The british government will hand over tens maybe hundreds of billions to the Spanish economy.

And the best bit... you'll really like this... Santander got Nortertn Wreck and B&B for nothing.

And they paid for Abbey with their own shares.

Santander may well go down as the biggest con in history... beating soros bring down the pound as financial sweeps.

Edited by RufflesTheGuineaPig

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Abbey Notional.

Like it. :lol:

To think that, before 'light touch regulation' (© Gordon Brown) building societies were such solid institutions.

Wasn't Abbey Notional the first BS to demutualise (horrible word) way back in 1989?

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I got out of Santander the other week. Though tbh it was more to do with their appalling customer service than their imminent demise.

I'm moving to Nationwide for their 2.99% saver.

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I thought that was the case, pretty sure they only got the savers and presumably a lot of the branches, but not the mortgage book. Dunno about unsecured loans and credit cards (If they did any).

Agree there is no reason to keep in Santander unless the risk reward ratio is compelling (it is not). So moving on....

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What Are The Chances Of Santander Going Bust?

About the same as the last 4 years that people on this forum have been claiming that Santander's next. No doubt next year they'll again show profits of 8 or 10 billion, and forum members will again be claiming they're about to go bust.

Funny about that Soto de Henares clip. Not a place I'd want to move in myself (Alcobendas would be a better option), but the flats there are being occupied, and there's a lively "neighbours' forum" . Their biggest gripe seems to be the slowness in getting linked to the Metro. Otherwise it's actually quite a good location for Barajas and the east of Madrid.

spanish forum

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I got out of Santander (or Sanitarytowel as some call it) a few weeks ago and persuaded my mother to close her account too. It's an awful bank with appalling customer service and a bank insider intimated that it faces solvency issues and other major problems.

Edited by Red Baron

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I got out of Santander (or Sanitarytowel as some call it) a few weeks ago and persuaded my mother to close her account too. It's an awful bank with appalling customer service and a bank insider intimated that it faces solvency issues and other major problems.

But that's a kind of hallmark of success these days. isn't it?

I used to queue for hours in the locally re-branded Abbey - next to a carboard cutout of Lewis Hamilton and other Santander sponsored Formula 1 icons - only to discover that Abbey/Santander can do almost nothing at branch level these days . . . they can't change a bag of coppers . . they can't do a credit transfer . . . if you want more than a couple of hundred, you can't make a withdrawal without two forms of identity and a previous notification . . . you can't even phone your local Santander branch . . . you can only communicate with a call centre. (Outsourced to the Outer Hebrides or somewhere like that.)

Santander's claim to fame is all its branches all over the world. But try and go on holiday or abroad without telling them. Your card won't work anywhere. This was the subject of a recent phone-in on Radio4. Santander/Abbey left me stranded a few times in Europe. Why? Cause I suppose they are living on a nervous margin.

If the Eric Cantona protest wants to stress test a bank on December 7, I think Santander would make an interesting target.

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