Santander Consumer USA Chairwoman Resigns for Broader Role at Spanish Lender -- Update
July 12 2016 - 1:40PM
Dow Jones News
By Tess Stynes
Former J.P. Morgan Chase & Co. executive Blythe Masters
resigned as nonexecutive chairwoman of Santander Consumer USA
Holdings Inc., the subprime auto-lending unit of the Spanish
banking giant, after less than a year.
Ms. Masters, who was appointed to the position in July 2015,
will move into a broader role with parent company Banco Santander
SA with a focus on its global digital banking efforts.
Among her new duties, Ms. Masters will be senior adviser on
technology and blockchain, the record-keeping technology behind the
bitcoin currency.
While alternative currency bitcoin itself has been embroiled in
legal battles and volatility, the underlying blockchain technology
-- or distributed ledger technology -- has drawn heavy interest
from mainstream finance as a potential way to help reduce
costs.
Ms. Masters also will join Santander's international advisory
board, as well as the board of Santander's online bank,
Openbank.
Ms. Masters is chief executive of financial technology startup
Digital Asset Holdings LLC -- a startup developing mainstream uses
for blockchain technology. Her previous experience includes senior
executive roles at J.P. Morgan Chase, including serving as head of
its global commodities business from 2007 to 2014, and serving as
finance chief of its investment bank from 2004 to 2007.
William Rainer, a former chairman of the U.S. Commodity Futures
Trading Commission, will take over as head of Santander Consumer's
board.
Ms. Masters's resignation comes after the U.S. Federal Reserve
recently rejected the capital plan of Banco Santander SA's U.S.
holding company in its annual stress test -- the third year the Fed
has faulted the unit, citing deficiencies across a range of
business operations. The rejected capital plan marked the latest in
a string of setbacks for Santander in the U.S.
Regulators also have faulted risk management at the U.S.
consumer-lending subsidiary, whose previous chief executive, Tom
Dundon, stepped down in July of 2015.
Santander executives have said during the past couple of years
that the regulatory troubles in the U.S. are partially the result
of growing pains as the lender builds up from scratch a holding
company to oversee its banking unit and consumer-lending
subsidiary.
Santander Consumer, one of the largest U.S. auto lenders, also
has faced a number of federal inquiries into its auto-lending
practices.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
July 12, 2016 13:25 ET (17:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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