Heard a bit on the news that Santander (Spain) is in trouble.

However I also read that the Spanish and English branches are legally/
financially isolated.

I read somewhere else that there are loopholes and money could be
transferred to Spain to help out over there. Apparently by using it to
pay out divi to Spanish shareholders.

But it was only the DM so it could be ********.
http://www.dailymail.co.uk/money/art...by-enough.html

But maybe not.
http://www.moneysavingexpert.com/sav...avings#foreign

Apparently if an EU bank in the UK goes bust, you would have to claim
from the country of origin.
So what happens if that country is bust/defaults?

Ie the £85,000 Uk gov. thing does/may not apply.

Banks from outside EU (eg Iceland) have to have the full cover.