Santander: The reign in Spain

Santander finds itself in the wrong business in the wrong country at the wrong time. A $111bn bank based in Spain during credit and housing crises is the ultimate candidate for a short position. No wonder its shares are down 22% this year, while the sector is down by 14%. That seems too harsh. As with any big bank these days, there is always the fear that something dreadful could be around the corner. But Santander had only minimal exposure to US subprime mortgage debt, through its 25% stake in...