Bankers

The recent meeting between Spanish President Jose Luis Zapatero and the leaders of the main banks in Spain must have been interesting to say the least. Mr Zapatero, before the meeting, was quoted as saying: "I will tell them, with all my power and conviction, that this is not the time for large profits. It's the time to support credit and financing for families and companies in this country."

The meeting of course came days after Santander posted nearly 9 Billion Euros of profit for the financial year of 2008, which was only 2% down on their record profits in 2007. If they had not made a 500 Million Euros provision to compensate their clients involved in the Bernard Madoff scandal, they would have infact increased their 2008 profit by almost 3% - not bad in the current climate of bank failures.

They are not alone though. BBVA also announced large profits, but also the freezing of wages of 300 of its top directors. The President of BBVA earned over 5 Million Euros in 2007 so I am sure he will just about struggle on.

What was noticeable about the meeting was also that the President and the bankers were sat on chairs around a board-room style table (indicating sleeves were rolled-up and some serious work going on). Why was this noticable you ask? Well in their previous get-together a few months earlier the photos of them sitting around on comfy leather sofas chatting may have given the wrong impression in the current times.

The main point that Zapatero tried to impress on the banks was the need for them to start lending again. Not something we will notice overnight but hopefully soon.

Back in the United Kingdom, the Halifax surprised everyone with their news that UK house prices rose 1.9% in January. It maybe just a blip of course............or not. More good news came out in the form of the retailers - the British Retail Consortium - announcing their strongest sales growth in six months. More good news on the horizon hopefully.