Time to get your money out?

[venator]

Spanish banks are now where Greek banks were a few weeks ago.

http://www.telegraph....tatement-in-full.html

Santander's UK operation could easily suffer, if the parent company takes cash from it.

[Nibble]

As Santander UK doesn't even give Grupo Santander as much as a cent since 2011, under agreement with the FSA, there's absolutely NO chance of this, as below:

Santander UK has been prevented from transferring any cash back to its Spanish parent company since December under a voluntary agreement with the Financial Services Authority.

The so-called "regulatory order" means that Santander UK needs the regulator's permission to transfer cash, underlining Santander UK's claim that its assets are ringfenced from its parent company. Concerns about the health of Spain's banks were growing following the mass downgrade by Moody's late on Thursday.

Steve Pateman, head of Santander UK's high-street banking operation, told the Guardian that the UK business had not paid a dividend to its parent company since the first half of 2011 and emphasised the financial strength of the UK business.

The FSA confirmed that the restriction was in place. "With the full co-operation of Santander UK, the FSA has in place arrangements that require the FSA to give permission to any transfer of funds out of the UK by Santander UK."

[venator]

I seem to recall that Santander acquired Abbey with a Spanish Government tax fiddle, for which they were later fined.

I note the words "voluntary arrangement" and " the full co-operation of Santander UK".

The FSA hasn't got much of a track record, either.


As I said before, let's look at it again in 3 months or so ....

[venator]

Update May 24th those silly councils are getting their cash out, but don't worry -


From Martins money blog - IS SANTANDER SAFE?

"3. Why are a few councils withdrawing cash?

The most important thing to understand is that while money saved by consumers is protected, money invested by councils and large businesses isn’t, so in the unlikely event even a fully UK regulated bank went bust, they wouldn’t get their cash back.

So during the Icelandic bank collapse, while no UK savers lost money as it was protected and paid out by the government, many councils and institutions use more complex ways of savings (ie, we’re not talking just cash in accounts here) and were exposed.

This has made some adopt an ultra-cautious stance and they are relying on credit ratings to help set their policies. I suspect there are some tick-box exercises going on here (ie, they need to keep cash within banks with certain credit rating settings)

[venator]

if I had money with Santander UK, i would be looking to put it somewhere safe. There have been more reassuring noises, but a VOLUNTARY agreement with the FSA isn't worth the paper it's not written on.

Keep watching....

I posted that nobody wins a war in Afghanistan before we went in - It's the national sport - and got slated, TOLD YOU SO !!!!!

[venator]

And none of the sheep raised their heads....