Santander USA Released from 2015 Fed Enforcement Action

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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