Latin America is part of our DNA he said

The "Botinglish" is probably more, today, the same smiles condescendingly of the City and Wall Street bankers. Those who had laughed, still a few weeks ago, watching YouTube video of Emilio Botin thanking very weathered Shakespeare language "Euromoney" magazine for the awarding of a prize of excellence at Banco Santander may have bitter laughter. After a dramatic period for international finance, this small man everything in roundness could well prove to be be one of the winners of the crisis. In 100 days, the group that he led purchased at low prices for the British Alliance & Leicester; has responded to the call to the rescue of the Government of her gracious Majesty to return to the network of Bradford & Bingley and just make sure, last week, the total control of Sovereign Bancorp., a bank based in Philadelphia, operating in the northeastern United States.

For someone who had for creed, a few years ago, "neither wars nor mergers", Emilio Botin Sanz de Sautuola y Garcia de los Rios, fourth of a dynasty of bankers, has no homework on external growth operations to Banco Santander first Bank of the euro area in terms of market capitalization and the fifth world in profits. This begins with the acquisition of Banco Espanol de Credito (Banesto) in 1994, followed five years later by that of Banco Central Hispano (BCH), which is the largest Spanish banking merger. Then comes the purchase of the British Abbey, in 2004, and, in 2005, the entry in the table of Sovereign Bancorp Tower. In 2007, Banco Santander initiates sharing assets of ABN AMRO with Royal Bank of Scotland and the Dutch insurer Fortis. With three guests of the feast, it is now which is best...

"The art of war".

After the bid for Alliance & Leicester, mid-July, the leaders provide yet, hand on heart, do not consider other acquisitions in the short term. Now, they say, is the digestion and the integration of new assets. We know that it is of the declarations of intent of Banco Santander. It is better to rely in this area on the rare expressions of its President when he said aim "to be the world champion of the Bank." Emilio Botin prepares for years, placing his pawns here and there. touching the ground. forging alliances with Société Générale in France, Commerzbank in Germany, SanPaolo-IMI in Italy or Royal Bank of Scotland in Britain.

The man is not, nor, moods to turn its portfolio. In a few days, he abandoned Banca Antonveneta, found in the trash to ABN AMRO for EUR 9 billion, $ 2.4 billion more that it does had paid it. It doesn't matter if he explained earlier that the Italy was "strategic" in his eyes. Of the operation, he keeps Banco Real, which reinforces its leadership in the Brazil and on the subcontinent. "Latin America is part of our DNA," he said.

History of the House, born on 15 may 1857 in Santander, Cantabria, following a decree of the Queen Isabelle II, is placed under the sign of openness to the world. The activity is linked to the trade generated by the port of the city with European and South American countries. Between 1920 and the end of the century, several generations of Botin move to propel Santander at the top of the Spanish banking poster and grow the establishment on the Latin American continent.

A ruthless requirement

Entered the House in 1960, "emilito" as it is known, is part of this expansionist line. But it is still more. Once the commands, in 1986, he quickly gives its potential. Forgotten the nickname! Emilio Botin Sanz de Sautuola Garcia de Los Rios begins by using the monthly luncheon in Madrid au gratin in the banking world. It was only a foretaste of what awaits these "gentlemen". In 1989, it is finished in their comfort: it breaks the non-aggression pact which unites the profession by offering a pay rate of 11 for the Spanish savings accounts, against an average of 5. The revolution is launched! The competition has six months to respond. Santander market share increased from 8 to 14 in one year.

"As the first field and expected the enemy has the stronger position." "One who arrived later and rushes to the combat is already weakened," explains a day Emilio Botin to his troops by citing "The Art of war", a book written some two thousand five hundred years ago by the Chinese philosopher Sun Tzu. A good part of its strategy is, no doubt, in these lines. And in those which characterize the five ways to recognize a winner. "Win to those who know when to fight or not." Who know how to discern when to use many or few. Who have troops, at all levels, aimed the same objective. Those who face prepared enemies taken by surprise. Those who have relevant General and are not clamped by their rulers.

The first combat of size against it Jose Maria Amusategui, counterpart of Banco Central Hispano (BCH), with which it must cohabit in the merger. The power struggle quickly burst. Emilio Botin is forced to reject her daughter Ana of the group management team. Approached to succeed him, this young banker who made its first weapon in JPMorgan and developed a small investment in Banco Santander Bank activity is "exile" at the head of Banesto, the subsidiary of the group mainly focused on the niche of the commercial bank and on the Spanish market. But the revenge soon. In the heart of the summer 2001, Amusategui takes the glove. He left with a comfortable 44 million euros compensation cheque "for his extraordinary work" and also nice retirement of EUR 5 million per year. Emilio Botin will be sued by a shareholder for largesse...

The man is now the only master on board. While only holding 1 of the capital of the group, he reigned without sharing. In the pure Spanish tradition, the company, listed on the stock market, remains a family affair, with the discretion that this implies. The pattern is demanding. Well paid, his troops must be available at any time. A French banker recounts with horror how one of his colleagues expressed appreciation of the overnight for daring to shift for a day a travel abroad to attend the communion of one of his children.

Planted in the middle of nowhere, in the suburbs of Madrid, ultramodern Banco Santander financial city, home to about 7,000 employees, could serve as a setting for "The firm", Sydney Pollack film. With its cumbersome security controls and its leaders that have a red tie, the House colour. The only touch of fantasy and greenery to desert decor is a magnificent golf course, one of the passions of the "big boss" with hunting and fishing.

The House is very critical for the risk management. Emilio Botin likes to tell how he was impressed, recently, a former head of the reserve Federal American describing the device in place in the group to avoid accidents. A specialized commission meets twice a week for four hours to peel records, while the Executive Committee and each Monday. In addition to its focus, the famous video of the President also popularized the advice to his son: "If you do not understand an instrument, is not used;" If you do not you buy a product, sell not... "A good number of Banif clients, the Bank of Santander pole, would have probably liked the same advice. This would have perhaps avoided them losing between 300 and 800 million EUR in Lehman Brothers structured products marketed by the House...

Always on the side of the power

No one is perfect, and in its irresistible rise, the pattern of Banco Santander has had a few bumps. Reflected in its problems with the tax authorities and the justice of his country. The last case, in judgment, concerning the repurchase in 1999 by Banesto, priced found unjustified in view of the situation of the company, shares held by relatives of Rodrigo Rato, then Minister of finance and the economy of Jose Maria Aznar. After a passage to the head of the international monetary fund, this financial brilliant figure, today, to the rank of the Councillors of Santander.

The House has to be always on the side of the power. Whatever its colour policy. Just as his father had quickly converted from Francoism to democracy, preaching occasionally for legalization of the Communist Party, Emilio Botin became unconditional support of Zapatero, having been one of Aznar. To the extent that the right-wing opposition, which suspected to be behind the latest financial rescue plan launched by the Government, accuses the Socialists of being the Party of the Bank. The world upside down! It is, no doubt, the troubled who wants this.

If it is not marine as his brother Jaume, Banco Santander pattern revealed in storm like the one that has known its business in Argentina. And, at the age of seventy-four, he shows no desire to leave the bar. Ana Botin will have to wait. After all, it has only forty-eight years old...