Dave Diggle - Blacktower Financial Management

Mine was consumed, how about yours?

A couple of years ago my Bank was taken over by La Caixa.  To be honest, this was one of the easiest changes I have had to deal with in Spain and therefore, in this regard I was lucky.  Especially as the previous bank took 6 months to assess a loan application I had made, to finally arrive at a negative answer. By the time I'd got that answer I'd already made 5 repayments to an obliging bank.  'Opeless.

We have seen many banks be swallowed up here in Spain since the crisis and I will remind you, the Spanish banking industry was seen as a fine example at the beginning of the crisis in 2008, because its purposeful structure should have prevented contagion (spreading or transfer of problems of a systemic nature).  Instead, individual institutions took the risk rather than having it spread throughout the industry and that is why some 7 years later we are still seeing takeovers of failed banking businesses. Time has dictated that maybe it wasn't such a shining light.

Do What?

This week it was announced that Barclays Banks across Europe have decided that unless a customer has at least £100,000 in their account they will be asked to close it.  My thoughts are this:

• How disgusting to get you on board initially and then change the criteria so that you must leave. What a cheek and what an inconvenience !

• Who would put such a large amount of cash with one institution with such a patchy reputation, anyway? 

BAD

This week I have taken on an 80 year old client who had an investment in a Spanish bank and they were told that they could release their invested funds without a charge. Not only were they investing 50% equities for a very cautious client (this is far too volatile), but that were charging Euro 3K in various forms to release it on just a Sterling 20,000 investment.  To be fair, the name of the bank does have the word “bad” in it.  The Clients are now safely under Blacktower's wing.

by Dave Diggle, International Financial Adviser Costa Blanca

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