Bail-in leglislation used as Spains 6th biggest bank goes bust

[Ah-so]

1 hour ago, Sancho Panza said:

Within the EU they can operate under a 'passport'.So may not be licenced in the UK

http://www.bankofengland.co.uk/pra/Pages/authorisations/passporting/default.aspx

Santander UK is subsidiarised here rather than passported. This means that it is directly supervised by the PRA and needs is own capital and liquidity buffers.

[Sancho Panza]

9 minutes ago, Ah-so said:

Santander UK is subsidiarised here rather than passported. This means that it is directly supervised by the PRA and needs is own capital and liquidity buffers.

I think most banks are.I was just pointing out that there are exceptions.

This is maybe something you could shed light on.Surely the risk of cross border contagion would make it far sensible for banks to ensure subsidiaries held independent licences of their own within each jurisdiction,rahter than allowing say,bad loans in Belgium to take down a UK bank? In other words,what's the benefits of 'passporting'?

Edited June 7, 2017 by Sancho Panza

[spyguy]

Can find it, but theres a few article in the FT.

There were a couple of commentsw hich werebetter than than the article.

Something along the lines of  'Banco Popular has passed the EU solvency test ~18 months ago, today its bust, wroth 1E. Either Sandtander have got he bargain of a lifetime, and the monopoly people should probe it, or the regulators are useless'

Despite the claims - its all political isnt it? Huge nogo areas created by the EU to stop German banks having to write off their Greek debts. People need to remmber this when they make claims about how good/fair the EU is (I voted Remain).

[Ah-so]

6 hours ago, Sancho Panza said:

I think most banks are.I was just pointing out that there are exceptions.

This is maybe something you could shed light on.Surely the risk of cross border contagion would make it far sensible for banks to ensure subsidiaries held independent licences of their own within each jurisdiction,rahter than allowing say,bad loans in Belgium to take down a UK bank? In other words,what's the benefits of 'passporting'?

I think that passporting rules were agreed in more innocent times. When the solvency of banks became a risk, it no longer looked like such a good idea. 

Given that banks love passporting, you would assume that if a bank is subsidiarised it's  at the request of the regulator.

[ExiledMatty]

I have spent a lot of time in Spain and I don't think the dog mess issue exists any longer.

Barcelona is awesome but the crowds really become too much after a few days. Little wonder authorities are trying to limit visitors. Not sure how they can do this but I suspect the war against AirBnB will help a little along with restricting hotel builds etc.

So many of Spain's brightest and youngest head overseas to get on in life. The ones that stay usually have the right connections to land an easy life in the bloated public sector.

I'd only recommend Spain as a long term destination to the already cashed up. Earning EUR 900 a month as an English teacher will ensure you have a very poor quality of life.

[Blod]

It interests me that although the SRB has solved this banks liquidity issues by forcing through a sale how would it be able to do that in difficult times. Santander are currently quite happy to take it on as they know they can raise funds to paper over Banco's hole. What happens next time. This only goes to demonstrate that the SRB can only work in benign market conditions. Imagine them trying to do this four or five years ago, it just wouldn't have succeeded.

[spyguy]

1 hour ago, Blod said:

It interests me that although the SRB has solved this banks liquidity issues by forcing through a sale how would it be able to do that in difficult times. Santander are currently quite happy to take it on as they know they can raise funds to paper over Banco's hole. What happens next time. This only goes to demonstrate that the SRB can only work in benign market conditions. Imagine them trying to do this four or five years ago, it just wouldn't have succeeded.

Nope. What happens when Santander goes under?

[Quicken]

Withnail: Free to those that can afford it, very expensive to those that can't.

[Funn3r]

4 hours ago, ExiledMatty said:

I have spent a lot of time in Spain and I don't think the dog mess issue exists any longer.

 

I was in Spain (OK it was Torremolinos and perhaps they try harder to keep a clean image) and I was just walking along. Suddenly a scooter mounts the pavement just in front of me and I wonder that the hell is going on. No problem though as bloke pulls out a long tube and hoovers up the dog poo! 

[interestrateripoff]

Good job the risks are only with 2nd tier banks. The primary tier can buy and rescue them with little risk.....

[adamLancs]

3 hours ago, Funn3r said:

I was in Spain (OK it was Torremolinos and perhaps they try harder to keep a clean image) and I was just walking along. Suddenly a scooter mounts the pavement just in front of me and I wonder that the hell is going on. No problem though as bloke pulls out a long tube and hoovers up the dog poo! 

It's a pooper scooter!