“Santander Bank, also called Banco de Santander (as it is a Spanish bank) is a bank holding company with banking online platform called Supernet and mobile banking for iOS, Android and Windows 8 for all customers or companies with banking products and / or financial. ”
When I went and look in a deeper manner, then I saw something dark, really dark behind this bank. Ana Botin (CEO and owner of a large number of shares) has much work outside Spain. A concern about the possible departure of the United Kingdom, where Banco Santander gets a large part of their income in the European Union, the serious problems of the entity in the United States adds. The US subsidiary of Spanish financial group did not present 2015 accounts on time, an unusual fact, so much so that the Securities and Exchange Commission (SEC) has its balance under investigation.
Santander Consumer USA Holding had to admit that he could not meet the obligation to register with the competent authority the results of the last fiscal year. An inescapable duty of any listed company whose failure usually leads to large uncertainty. In Spain, the last case was that of Bankia, with subsequent consequences of intervention by the Bank of Spain.
In this case, Santander consumer usa said that could not publish annual accounts because “its financial statements could not be completed”. The company adds that “the company currently has open several requests for information by the division of ‘corporate finance’ SEC” both on the accounts of 2014 as compared to the results until the third quarter of 2015. Specifically in relation to provisions on bad loans, including restructured debt problems and balance impairments.”The bank continues discussions on these issues with the SEC and their auditors and present the financial statements as soon as possible,” he said in a statement signed by Ismail Dawood, the new CFO, recently appointed after a new reorganization at the top Santander directive in the United States.
The problems across the pond do not stay there. The institution has had to recognize a loss of value of Santander Consumer USA (Scusa), its consumer lending subsidiary, which has plummeted in exchange for problems on the health of your portfolio that now investigating the SEC. Specifically, Santander has deteriorated over 1,800 million pricing its 70% of this company, goodwill of Santander Consumer USA spends 5,500 million to $ 700 million, 87% less.
Since this auto finance company went public in early 2014, the share price has risen from $ 24 to just 10 current. Its market capitalization has shrunk from 8,300 million to the initial $ 3,660 million showed Tuesday. Santander has valued its 70% in about 6,000 million dollars, bringing the total decline amounts to 3,500 million. The goodwill of Santander Consumer USA spends 5,500 million to $700 million, wow!! Way less.Ha!
From the bank it argues that value adjustment does not question the capital ratios of Santander or any of its divisions, nor does it require to make any provision or capital contribution due to the different accounting rules between Spain and the United States. European standards do not require making a mark to market or adaptation of the share market value, while American demand for continuous updating that there is no gap between how it is recorded in books and their real price.
These new problems with the SEC represent a new obstacle to Banco Santander can overcome the stress test that is submitted in the United States and who has failed to pass the last two years. As published The Confidential on 24 February, the Spanish entity assumes that suspended for the third time, which will mean that you cannot pay dividends or repatriate capital since the United States.
In my opinion these rich Spaniards are no good for the USA, the fact that they have played to the game of the financial bluff. Unpayable mortgages, etc, etc. It is now time to react and start using our banks only for one thing, leave our pocket money there. Whatever you need for the month and nothing else. Whatever you want to invest in stocks or bonds, do it through an independent advisor. In the long run will be better for you.