Santander USA Released from 2015 Fed Enforcement Action
August 16 2018 - 6:32PM
Dow Jones News
By Lalita Clozel
WASHINGTON -- The Federal Reserve on Thursday released Santander
Holdings USA lnc. from oversight restrictions imposed in 2015, when
the bank was sharply rebuked for failing to meet regulatory
standards across several of its business operations.
The Fed at the time had found deficiencies in several areas of
Spanish bank Banco Santander SA's U.S. holding company, including
how it manages its capital, its daily funding needs and corporate
governance. The action also faulted risk management at a
consumer-lending subsidiary, Santander Consumer USA Inc.
Santander said in a news release that the Fed's announcement was
the "fourth major regulatory milestone" for the bank, citing the
termination of another enforcement action last year and its
performance on recent regulatory examinations.
"We've had a great year in 2018, both in terms of improving
profitability and returning to normal operating standards," said
Santander U.S. CEO Scott Powell in a statement. "We look forward to
building on our momentum as we seek to cement a culture focused on
the highest levels of compliance and customer service."
The bank has separately been the subject of multiple probes by
state and federal regulators over its auto-lending practices in the
U.S.
Last year, it was fined $25.9 million by Massachusetts and
Delaware authorities for allegedly funding subprime auto loans that
borrowers couldn't afford.
(END) Dow Jones Newswires
August 16, 2018 18:17 ET (22:17 GMT)
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