Explainer: Santander grew under strict reserves regime

[NotAllThere]

That maybe so but the Swiss foolishly got into debt derivatives based on morgages issued by other banks - Spanish rules appear to have taken care of this issue with banks not allowed off balance sheet shady deals.

It is shocking that bank regulation in Spain (country of huge real estate boom) appears to be better than in Switzerland.

UBS and Credit-Suisse got into the debt derivatives, but the rest of the Swiss banking system didn't. (I've no idea what %age of the market UBS and Credit-Suisse have here). Switzerland is not a credit driven economy, unlike the US and the UK. I wouldn't for a moment suggest that we'll be unaffected by swings in the global economy - but there is NO credit crunch here. Even UBS and Credit-suisse are quite happily dishing out domestic mortgages.

[Cyberman]

UBS and Credit-Suisse got into the debt derivatives, but the rest of the Swiss banking system didn't. (I've no idea what %age of the market UBS and Credit-Suisse have here). Switzerland is not a credit driven economy, unlike the US and the UK. I wouldn't for a moment suggest that we'll be unaffected by swings in the global economy - but there is NO credit crunch here. Even UBS and Credit-suisse are quite happily dishing out domestic mortgages.

You do not know who has done these shady deals and you are making sweeping statements and dangerous assumptions. The credit crunch is worldwide and the ramifications are affecting any bank that borrows on the moneymarkets, not just those with US sub-prime, so Swiss banks are quite obviously not immune.

[AtW]

UBS and Credit-Suisse got into the debt derivatives, but the rest of the Swiss banking system didn't. (I've no idea what %age of the market UBS and Credit-Suisse have here).

Let's hope so - just like you I am not sure %-tage of UBS and CS take there but I think it's pretty large. I hope the Swiss will make some long reaching conclusions about these speculative gains and focus on their core services - safe heaven for Putin's mates and alike.

[AtW]

Swiss banks are quite obviously not immune.

Yes, but they can use cheese, chocolate and cookoo clocks as collateral, what can UK use - £400k 1-bedroom house in the arse-end of Looooooondoooooooon?

[The Lone Gunman]

Looooooondoooooooon

You need to work on your accent matey. That should be Laaaaarndaaaaaarn taaaaaaarn

[AtW]

You need to work on your accent matey. That should be Laaaaarndaaaaaarn taaaaaaarn

I am more into poopular Welsh these days (SFW - if swearwords are safe, no n***** there though).

[cupidstunt]

... and Lloyds are buying HBOS, and RBS are buying PART of Amro. Wise heads are now saying that both of those deals are destined for failure in the medium to short-term.

The problem is that when these purchases are made, the 'hidden' problems are not obvious. Who's to say that Santander may not be making a similar error. I think you are too quick to crow!!

I predicted a year ago that B&B and HBOS could be the next to fall after the nationalisation of the Rock. I now predict that Santander could hit similar problems. As I say, let's wait and see !!

You git.

http://www.ft.com/cms/s/0/229a745c-a...077b07658.html

[AtW]

You git.

http://www.ft.com/cms/s/0/229a745c-a...077b07658.html

The big irony is that this Spanish bank seemed to have avoided the temptation to play Spanish morgages game leaving this for the mug banks in Britain and other places

[Cyberman]

The big irony is that this Spanish bank seemed to have avoided the temptation to play Spanish morgages game leaving this for the mug banks in Britain and other places

The article states that Santander are exposed to the Spanish housing market and also to the South American slowdown. Don't forget that little thing call a CDS(credit default swap) which will raise its profile very soon across the whole financial spectrum.

As I stated a month ago, it really is to early to crow. Time will tell, but I seem to recall banks such as RBS and HBOS posting good results only a few months ago. A few billion profit pales into insignificance once write-offs commence.

[EternalOptimist]

The article states that Santander are exposed to the Spanish housing market and also to the South American slowdown. Don't forget that little thing call a CDS(credit default swap) which will raise its profile very soon across the whole financial spectrum.

As I stated a month ago, it really is to early to crow. Time will tell, but I seem to recall banks such as RBS and HBOS posting good results only a few months ago. A few billion profit pales into insignificance once write-offs commence.

I agree. Crowing should, in my experience, follow a sort of exponential curve. Start off with a little crow, maybe 1 or 2% worth, then when you dont get flamed, wade in with a 5% sized crow. When you are sure you are right, let rip with a major crowing of about 80% of the full crow value.

I think you are being a bit premature with you midi-crow, please slacken off for a week or two