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Uk Banks Abandon Eurozone Over Greek Default Fears

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http://www.telegraph.co.uk/finance/financialcrisis/8584442/UK-banks-abandon-eurozone-over-Greek-default-fears.html

UK banks have pulled billions of pounds of funding from the eurozone as fears grow about the impact of a “Lehman-style” event connected to a Greek default.

Senior sources have revealed that leading banks, including Barclays and Standard Chartered, have radically reduced the amount of unsecured lending they are prepared to make available to eurozone banks, raising the prospect of a new credit crunch for the European banking system.

Standard Chartered is understood to have withdrawn tens of billions of pounds from the eurozone inter-bank lending market in recent months and cut its overall exposure by two-thirds in the past few weeks as it has become increasingly worried about the finances of other European banks.

Barclays has also cut its exposure in recent months as senior managers have become increasingly concerned about developments among banks with large exposures to the troubled European countries Greece, Ireland, Spain, Italy and Portugal.

In its interim management statement, published in April, Barclays reported a wholesale exposure to Spain of £6.4bn, compared with £7.2bn last June, while its exposure to Italy has fallen by more than £100m.

One source said it was “inevitable” that British banks would look to minimise their potential losses in the event the eurozone crisis were to get worse. “Everyone wants to ensure that they are not badly affected by the crisis,” said one bank executive.

Will we shortly be seeing another liquidity crisis?

No surprise really that the banks want to get out while they can.

Still at least they are withdrawing back to the UK where we are all safe as houses.....

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Could it mean more lending in the UK?

If there are actually any banks that are solvent enough to lend, I doubt they won't be doing any serious lending until this crisis is over. So I wouldn't worry about it, crash on!!!

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Spanish banks have become the main focus of market concerns with the latest European Central Bank (ECB) figures showing that Spanish banks have been forced to increase their use of ECB lending facilities and borrowed a total of €58bn (£51bn) in May, up from €44bn in April.

“We have been amazed at the ability of Spanish banks to find ways to fund themselves, but it is clear they are running out of options,” said one senior analyst at a major investment bank.

Does the FSA guarantee extend to Santander? For what it is worth anyway!!

Might be worth reminding ourselves how exposed Santander are to the Spanish property crash and the level of business (number of personal accounts held) they do in the UK?

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Does the FSA guarantee extend to Santander? For what it is worth anyway!!

Might be worth reminding ourselves how exposed Santander are to the Spanish property crash and the level of business (number of personal accounts held) they do in the UK?

Yes. Santander retail deposit is converted by £85k FSCS guarantee.

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I didn't realise that UK banks had retrenched so much from Euro banks, so quickly. If true, surely this will be another huge credit crunch on our doorstep very soon.

IMO, these things come to a head quicker than expected once the momentum is there. I don't think this Greek problem will take months to unfold, but instead weeks. It sounds like we're on the verge of seeing some big changes.

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If Santander were to 'fall over' no doubt a Spanish Government bailout would follow in much the same way as the UK Government bailed RBS and HBOS. The implicit guarantee!!

Could the Spanish Government 'fix this' by this means or given the existing levels of Spanish debt would the markets read such a promise as 'undeliverable'?

Finally on the backdrop of all this would the FSCS actually make good on their promise?

Seems all rather 'airy fairy' to me. They prepare and promise for the worst whilst at the same hoping like buggery it never comes to it as they could never afford to pay it out....

Bit like a credit default swop eh?

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http://www.telegraph.co.uk/finance/financialcrisis/8584442/UK-banks-abandon-eurozone-over-Greek-default-fears.html

Will we shortly be seeing another liquidity crisis?

No surprise really that the banks want to get out while they can.

Still at least they are withdrawing back to the UK where we are all safe as houses.....

This is actually quite a big story. It is a vote of no-confidence in the EZ coupled with evasive action. This may be a buy signal for the Euro if we are still in a contrarian market but I can't see the Euro lasting for much longer at anything like its current value.

Euros anyone? :o

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This is actually quite a big story. It is a vote of no-confidence in the EZ coupled with evasive action. This may be a buy signal for the Euro if we are still in a contrarian market but I can't see the Euro lasting for much longer at anything like its current value.

Euros anyone? :o

Well, people have been talking mostly about German concerns. But I believe France has a greater exposure to Greece and, perhaps more ominously, it is Spain's biggest creditor. During the Irish bailout, there were huge concerns about Belgium's exposure to Ireland. So yes, it's as if everyone is covering one base-ahead.

Picking on a particular country is still largely orchestrated, though. Belgium has the highest risk potential for its size . . . and it hasn't even had a Government for one whole year. Why is nobody downgrading it? Brussels will downgrade itself last of course.

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I didn't realise that UK banks had retrenched so much from Euro banks, so quickly. If true, surely this will be another huge credit crunch on our doorstep very soon.

IMO, these things come to a head quicker than expected once the momentum is there. I don't think this Greek problem will take months to unfold, but instead weeks. It sounds like we're on the verge of seeing some big changes.

Nothing to worry about, the ECB simply need to enter a large number into the computer and create some more digital Euros.

This European crisis should also be a good excuse of Benny Boy to helicopter in some more liquidity past QE-II.

Then no doubt Merv will join in.

And some talk of the financial crisis in the past tense, we ain't seen nothing yet...

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Oddly enough, the FX markets like this news as the Euro appears to be bouncing nicely upwards. Nothing like the major banks pulling out to boost confidence!

The FX markets are closed. You been having an afternoon tipple over there RB? ;)

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This is actually quite a big story. It is a vote of no-confidence in the EZ coupled with evasive action. This may be a buy signal for the Euro if we are still in a contrarian market but I can't see the Euro lasting for much longer at anything like its current value.

Euros anyone? :o

As long as they are German ones, it's a buy.

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My guess is they can't guarantee peoples savings but they are saying they can to stop panic, when this house of cards falls you'll see how empty their promises are.

They can guarantee the money, didn't Darling suggest they'd just print it if needed? You'll get your money, but what purchasing power it will have is anyones guess.

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Could it mean more lending in the UK?

I doubt it because UK banks are unlikely to want to lend to each, as in 08, no one knows who owes what ro whom and who will be able to pay it back. Including UK banks.

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  • 276 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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