By Ryan Tracy
The Federal Reserve is requiring Banco Santander SA to make
sweeping improvements to risk management at its U.S. subsidiaries
under an enforcement action issued Tuesday.
The Fed faulted the Spanish-owned bank's U.S. unit for
deficiencies across a broad swath of its organization, including
how the bank manages its capital buffer, daily funding needs,
internal audit program, and risk management at its consumer-lending
subsidiary, Santander Consumer USA Inc.
The Fed isn't fining the bank, but it reserved the right to do
so later and required the bank to write a series of remedial plans
to fix the problems.
Representatives from Santander didn't immediately respond to
requests for comment.
Santander had previously disclosed the Fed was preparing an
enforcement action against the bank and announced last week that
Santander Consumer's chief executive Thomas Dundon was stepping
down.
--Jeannette Neumann contributed to this article.
Write to Ryan Tracy at ryan.tracy@wsj.com
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