Friday, May 18, 2012

Santander is the next Northern Rock

a running bank © fintag

News comments:
An alarmist headline like this should send me to jail.

But it is becoming clear we are all leading up to an almighty run on the banks as is already happening at Greek and some Spanish banks. You can feel it in the air and with newspapers like the Daily Mail pronouncing ...

David Cameron says 'truly worrying' crisis could 'get a lot worse'

String of local councils withdraw their deposits from Santander accounts

FSA says it is 'unlikely' to allow UK division to prop up Spanish parent firm

...there will be lines of pensioners and others distrustful of the banks hoovering out their Santander bank accounts. Apparently.

When Northern Rock ran, I was lucky to take the world's first photograph of people lining up. Alas you won't find me standing outside Santander branches because these days its online banking that prevails.

Santander along with all the other Euro banks are gloating over their non-liquidity issue as the ECB is there to cushion them from the effects of a huge deposit drawdown. The ECB is turning into a bad bank, one which could only ever be saved by Facebook and Apple stockholders and this is quite frightening. Not until it starts printing real Euros and the Germans get over their inflation phobia, then we can all sleep peacefully. In the meantime remember fintag has been alerting you all to Spain's woes for years...

Whether Santander suffers a run (with its new 95% LTV mortgages and its attractive 123 bank account it is sending out odd signals), lets hope the cash pours into Lloyds TSB and RBS for these useless banks are owned by the UK taxpayer whereas Santander and other jonny foreigner banks rely on the FSA compensation scheme and fingers crossed Iceland style that you will get your max GBP85k back.

By all means hang around your local branch of Santander with iPhone in hand; personally I am going long mattresses and De La Rue who will soon be printing lots of new Drachma, Lira and Pesetas in the not to distant future.

Today's shorts:
BBC says Santander is safe as houses (guffaw...) (bbc)

Told you so (fintag)

Today's longs:
Santander ban people with iPhones in their branches (evening standard)

Lewis Hamilton to bailout Santander.