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Santander (SC) to Improve Compliance Program Per Fed's Order
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Santander Consumer USA will have to improve its compliance risk-management program in the next two months. The auto-lender based in Dallas, TX, is a subsidiary of Santander Holdings USA, Inc – which is the U.S. unit of Banco Santander SA (SAN - Free Report) .
This comes as part of the Federal Reserve’s order, which requires Santander Holdings to improve the oversight of management and operations of its subprime auto-lending company.
In Jul 2015, Santander Holdings had entered into a written agreement with the Federal Reserve Bank of Boston (Reserve Bank), wherein the former had agreed to submit a written plan, acceptable to the latter. The plan included strengthening board oversight of the management and operations of the consolidated organization and enhancing its firm-wide, risk-management program, which it had adopted to identify and manage risks across the consolidated organization.
Santander Holdings, however, is yet to take necessary actions to comply with the agreement.
Upon investigating, the Reserve Bank found certain shortcomings in Santander Consumer’s compliance risk-management program. These include deficiencies in its consumer-compliance program.
Moreover, in its recent order, the Fed stated that some other federal and state authorities have identified violations of certain federal and state consumer-compliance laws and regulations.
Going by the Fed’s recent order, Santander Holdings needs to improve oversight of its subsidiary’s compliance risk-management program to ensure compliance with all applicable federal and state laws, rules, and regulations, including consumer compliance laws and regulations by Santander Consumer.
In fact, the Fed’s latest order follows the one given in 2015 to Santander Holdings to overhaul its business operations.
Shares of Santander Consumer have lost 50.5% since Jul 1, 2015, compared with a decline of 11.1% for the Zacks categorized Financial - Consumer Loans industry.
Currently, the company carries a Zacks Rank #5 (Strong Sell).
A couple of better-ranked stocks in the finance space are Evercore Partners Inc. (EVR - Free Report) and Bank of America Corporation (BAC - Free Report) .
Evercore Partners witnessed an upward earnings estimate revision of 6% for the current year, in the last 60 days. Its share price increased 54.5% in the last six months. Evercore Partners currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bank of America carries a Zacks Rank #2 (Buy). For the current year, in the last 60 days, its Zacks Consensus Estimate revised 1.2% upward. Its share price increased 53% in the last six months.
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Santander (SC) to Improve Compliance Program Per Fed's Order
Santander Consumer USA will have to improve its compliance risk-management program in the next two months. The auto-lender based in Dallas, TX, is a subsidiary of Santander Holdings USA, Inc – which is the U.S. unit of Banco Santander SA (SAN - Free Report) .
This comes as part of the Federal Reserve’s order, which requires Santander Holdings to improve the oversight of management and operations of its subprime auto-lending company.
In Jul 2015, Santander Holdings had entered into a written agreement with the Federal Reserve Bank of Boston (Reserve Bank), wherein the former had agreed to submit a written plan, acceptable to the latter. The plan included strengthening board oversight of the management and operations of the consolidated organization and enhancing its firm-wide, risk-management program, which it had adopted to identify and manage risks across the consolidated organization.
Santander Holdings, however, is yet to take necessary actions to comply with the agreement.
Upon investigating, the Reserve Bank found certain shortcomings in Santander Consumer’s compliance risk-management program. These include deficiencies in its consumer-compliance program.
Moreover, in its recent order, the Fed stated that some other federal and state authorities have identified violations of certain federal and state consumer-compliance laws and regulations.
Going by the Fed’s recent order, Santander Holdings needs to improve oversight of its subsidiary’s compliance risk-management program to ensure compliance with all applicable federal and state laws, rules, and regulations, including consumer compliance laws and regulations by Santander Consumer.
In fact, the Fed’s latest order follows the one given in 2015 to Santander Holdings to overhaul its business operations.
Shares of Santander Consumer have lost 50.5% since Jul 1, 2015, compared with a decline of 11.1% for the Zacks categorized Financial - Consumer Loans industry.
Currently, the company carries a Zacks Rank #5 (Strong Sell).
A couple of better-ranked stocks in the finance space are Evercore Partners Inc. (EVR - Free Report) and Bank of America Corporation (BAC - Free Report) .
Evercore Partners witnessed an upward earnings estimate revision of 6% for the current year, in the last 60 days. Its share price increased 54.5% in the last six months. Evercore Partners currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bank of America carries a Zacks Rank #2 (Buy). For the current year, in the last 60 days, its Zacks Consensus Estimate revised 1.2% upward. Its share price increased 53% in the last six months.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging
phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>