Do you think Kent County Council have over - reacted by withdrawing their funds from Santander UK??

Probably yes, but they were stung by the Icelandic affair.
They can now put their money in a safe bank like RBS or Lloyds-TSB.

Stevie
On its own merits, they may have overreacted. But the real issue is the collateral banks have lodged with the ECB against their LTRO loans. Whilst one would hope that all this is ring fenced in national operations, we all know the ECB has insisted that banks must lodge their highest grade assets as collateral.

If i had money with someone who had taken LTRO financing, I would be very careful too.

No they have not over reacted. Just read an article (SNIP). The Financial Services Compensation Scheme does not protect companies for bank deposits. It is a compensation scheme for personal investments only. Many companies and councils suffered when the Icelandic Banks went under, councils cannnot afford to take risks with millions in tax payers money.

Mnay UK councils lost a great deal of money in the Icelandic affair, and I bet a lot more are looking, very carefully, at the current Euro crisis, at least I would hope they were.

Bank exposure by country to Greece (it's from 2011, so could well be out of date)

http://www.guardian.co.uk/news/datab...s-bank-exposed

Cash for Trash Scam by LTRO.

The banks make a big fat killing whilst the punters are once again left holding the baby.

http://eurotradingtrend.com/european...-explained.php

Brilliant little vid explaining how the scam works.

I would highly recommend watching it,( don't be put off by the first 20 seconds or so of nonsense).

Interesting video, but I find it hard to take a comic strip with an Irish commentator. Have you watched the Kayser Report on RT.com?

My brother had quite a sum in Iceland and 80% has been repaid with the rest due in November. I suppose other investors have had some money back. Can't blame anyone for taking their money out of Santander, or any other which seems on the slide...it's called being cautious

My daughter is with RSB bank who have just informed her that they are being taken over by Santander!!!!

just hope she doesn't receive a letter to tell her they have been taken under by Santander

Not true. They were told to sell off some of their assets by the regulators. See here>
http://rbsbranchinformation.co.uk/

http://www.telegraph.co.uk/finance/p...-answered.html

It is a transfer of accounts and some branches to Santander, they have told me also but I already have a Santander account - with a quid in it. HSBC is the least exposed to Euroland, I think, but hopeless saving rates so I am mostly with Nationwide who should be okay as long as UK house prices stay stable. Who is paying for the Spanish banks to offload their assets at 30-50 precent of value, hopefully the ever industrious Germans in the end.

A third of all the money in the GreeK banks has been withdrawn already but Greece maintains there is not a "run" on their banks.... Spain next?

Santander UK has been down graded although only to A2 and not A3 as Santander Spain.
And with the Argentine et al nationalising Spanish companies, the number of non performing South American loans on its books is only going to rise.