James Levy

Investors Can Bank on Banco Santander - Barron's

It is true that Santander is an extremely well run, well diversified bank, and the author´s analysis is valid. However, she overlooks the very significant factor of country risk. Santander is based in Spain, where is has a huge retail operation, with a branch on almost every street corner. Spain´s Socialist government is led by an extreme left wing Hugo Chavez wannabe, and is rushing headlong toward insolvency as unemployment soars past 20% on the way to 25% and the government refuses to take any action other than further increase deficit spending to attempt to buy political support to survive until elections are scheduled in 2012.

I have lived and worked in the financial sector in Spain for 20 years, and under these current circumstances, could not possibly recommend any Spanish based company to investors. Spain is now where the US will be in a few years if it continous on its current Socialist course.