tag:blogger.com,1999:blog-4815867514277794362.post7054516065935860947..comments2024-03-08T06:18:28.125+11:00Comments on Bronte Capital: How to guarantee your job in a Spanish bankJohn Hemptonhttp://www.blogger.com/profile/03766274392122783128noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-4815867514277794362.post-12787748214647842612009-02-07T02:24:00.000+11:002009-02-07T02:24:00.000+11:00Now if they would just nationalize the banks in th...Now if they would just nationalize the banks in the US, the taxpayers would have no incentive to walk away from their mortgages anymore.<BR/><BR/>40 acres and a mule. McMansion and an Escalade.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-23839037803545380392009-02-06T21:20:00.000+11:002009-02-06T21:20:00.000+11:00John,Don't assume Spanish mortgages are limited re...John,<BR/><BR/>Don't assume Spanish mortgages are limited recourse. I haven't looked it up but they are almost certainly full recourse. This is common in Europe.<BR/><BR/>As long as the employees involved have assets, Santander is fine. On top of that, if they are fired and can then no longer afford the mortgage Santander will have their redundancy pay as additional collateral. Bloody clever really.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-22372721950803077252009-02-06T16:18:00.000+11:002009-02-06T16:18:00.000+11:00Johns argument of course assumes a rational and in...Johns argument of course assumes a rational and internally well communicating bank.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-58893373639441946712009-02-06T10:21:00.000+11:002009-02-06T10:21:00.000+11:00Come on - this is obvious...If you sell something ...Come on - this is obvious...<BR/><BR/>If you sell something with 100% loan - especially if that loan is limited recourse - you get a better price for it. Happened in US housing.<BR/><BR/>If Santander now sacks the employee the loss that was deferred is now realised.<BR/><BR/>Santander is about to downsize. If you are employee you have an opportunity to massively raise the cost of Santander sacking you.<BR/><BR/>JJohn Hemptonhttps://www.blogger.com/profile/03766274392122783128noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-54248463875349936592009-02-06T08:16:00.000+11:002009-02-06T08:16:00.000+11:00i was also puzzled by the 'job security' comment. ...i was also puzzled by the 'job security' comment. in most countries it is illegal to keep employees as collateral.babar ganeshhttps://www.blogger.com/profile/01898299856773302141noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-49491116290040487102009-02-06T04:42:00.000+11:002009-02-06T04:42:00.000+11:00Why loss deferral? I assume the discount is in rel...Why loss deferral?<BR/> I assume the discount is in relation to market price.<BR/> If the property is valued in its books over the selling price, then the loss is instantly recognized, isn´t it?<BR/> And if it isn´t there is in fact a gain. And given that the buyer has a job (as long as SAN wants him to at least) and that the discount provides a cushion so that the collateral is good even with 100% financing, the mortgage shouldn´t be too risky.<BR/> This operations won´t make much money for the bank, but they serve to unload risk and real state.elartistamadridistahttps://www.blogger.com/profile/13700628721348517769noreply@blogger.com