Tags: Federal Reserve | enforcement | action | Santander

Fed Orders Banco Santander to Fix Capital Defects at US Unit

Tuesday, 07 Jul 2015 01:08 PM

The Federal Reserve is ordering the U.S. unit of Spain’s largest bank, Banco Santander SA, to resolve flaws with management and capital planning, the latest shortcoming in a series of run-ins with regulators.

Santander, whose U.S. division failed the Fed’s stress test earlier this year, must submit several plans within two months that describe how its board will better oversee operations and how it intends to improve management of risk, capital and liquidity, according to the order released Tuesday.

The Federal Reserve Bank of Boston, which is responsible for inspecting Boston-based Santander Holdings USA Inc. “identified deficiencies in the organization’s governance,” the order said.

Since its stress-test setback, the bank has said it’s been adding staff and working to improve its internal compliance processes. Nancy Orlando, a spokeswoman for Santander, didn’t immediately respond to phone calls seeking comment.

Santander and Deutsche Bank AG were the two firms that had their capital plans rejected by the Fed because of qualitative concerns about internal processes for managing risk.

The firm is also among six that will be restricted in buying mortgage servicing rights because they haven’t met the demands of previous regulatory orders, the Office of the Comptroller of the Currency said last month.

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The Federal Reserve is ordering the U.S. unit of Spain's largest bank, Banco Santander SA, to resolve flaws with management and capital planning, the latest shortcoming in a series of run-ins with regulators.
Federal Reserve, enforcement, action, Santander
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2015-08-07
Tuesday, 07 Jul 2015 01:08 PM
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