Comments on: Santander starts selling its Brazilian jewel A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 By: Matthew Greenfield Fri, 31 Jul 2009 14:52:26 +0000 Santander is not a strong bank. It is a bank that refuses to recognize losses, even as unemployment in Spain passes 20% and real estate prices plummet.

By: Charles Butler Fri, 31 Jul 2009 14:45:40 +0000 The prospectus published by Santander when they diluted carried the specific warning that the financial results from the purchase of ABN-Amro assets in Brazil might not be as good as previously thought at the time of purchase. No surprise if they need capital. But probably a good moment to be going to the market.

SAN/BTO and BBVA, btw, form nowhere near a duopoly in Spanish banking. They are dominant in the 50% of the national business that is not transacted through the cajas de ahorros. Santander, however, is particularly expert at various retail strategies that approach bait-and-switch.

By: Lgg Thu, 30 Jul 2009 13:26:16 +0000 Keep in mind that Santander sold Banco de Venezuela to the Venezuelan Government almost a month ago for little more than USD 1bn, also allowing the bank to claim unpaid dividends around USD 304 MM (see ws/idESMAE5620W120090703?rpc=444).

Granted, this money was supposed (as per Santander) to pay Sovereign Bancorp, but this points to two things: (i) isn’t it a better use of the money from Banvenez to shore up capital for Santander, instead of buying a questionable asset?; and (ii) why buy a giant headache, such as Sovereign, with money from Brazil’s Santander assets?

By: chris Thu, 30 Jul 2009 09:14:28 +0000 that is an interesting point of view and comment.
I always see business in a Yin and Yang metaphor .
Is banco santander strong ? yes, no shadow of a doubt. But why ?

Well, one reason is Spain. Bear in mind that BS and BBVA nearly have a duopoly in Spain. They are capable of charging fees for almost anything, from a 5 Euros monthly to keep your money to anything else.
yes they have some real estate troubles, but why panic when the fees your charges keep growing andkind of balance the losses in other parts of the business.

That, my friend is smart strategy . But Botin and Co did well so far.