Santander PROBLEMS !!

[Cyberman]

They had to raise money because they moved cash from elsewhere to avoid going with cap in hand to get bail out from Govt, like almost all big UK banks did.

So they declined bailout which implies they can handle on their own. If you are worried about bailout declines talk to Barclays.

Atw... you stated this earlier !!! That CASH is made up of people's deposits and thus IS PART OF THE CAPITAL RATIO !!! .....

[AtW]

Atw... you stated this earlier !!! That CASH is made up of people's deposits and thus IS PART OF THE CAPITAL RATIO !!! .....

Have you read the definition of Tier-1 ratio that I posted above? It clearly says that it mainly takes into account shareholder funds, that's why they issue new shares you idiot! If Tier-1 depended on cash they could have taken on cash loan, but it's not - the whole point of it is to ensure owners of the bank put in enough money to risk enough for the debts they accrue, otherwise any scammer would be able to build up bank risk free with high "capital" ratios using deposits.

[sasguru]

This message is hidden because AtW is on your ignore list.

This message is hidden because CyberMan is on your ignore list.



2 blithering cretins arguing about stuff neither understands.
Both completely delusional.

[Moscow Mule]

Atw... you stated this earlier !!! That CASH is made up of people's deposits and thus IS PART OF THE CAPITAL RATIO !!! .....

No it isn't.

Tier 1 capital is made up of the banks assets - assets which are owned by the bank.
Principally, this comes from the "list price" of the banks shares, wither £1 or £10 or whatever - not from the market value of the share. That said, banks often hold large numbers of their own shares - if their market share price goes down, their capital ration goes down.

Money deposited with a bank doesn't suddenly become owned by the bank - they are just looking after it.

[tay]

Why have you put problems in capital letters?

[AtW]

Tier 1 capital is made up of the banks assets - [I]assets which are owned by the bank.

He is confusing liquidity with capital ratios.

[AtW]

Whe did he go?

[eliquant]

The Spanish banks are liable for customer's NEGATIVE EQUITY !

I was quite suprised by this but apparently banks such as the BBVA and Santander in Spain who have given mortgages to private individuals would be obliged to make up the difference in terms of negative equity during sale of a property which they have lent the mortgage money on.

I dunno if this also applied to the Caja's which are like building societies which are obliged by law to invest locally into the community

[DimPrawn]

I was quite suprised by this but apparently banks such as the BBVA and Santander in Spain who have given mortgages to private individuals would be obliged to make up the difference in terms of negative equity during sale of a property which they have lent the mortgage money on.

That would be a good start in re-regulating the UK mortgage market. Make negative equity losses directly the lenders problem and not the borrowers. Might make them think twice about 125% liar loans at 10x income.

[Moscow Mule]

That would be a good start in re-regulating the UK mortgage market. Make negative equity losses directly the lenders problem and not the borrowers. Might make them think twice about 125% liar loans at 10x income.

Doesn't seem to have had any positive effects in the USA.