The Federal Reserve Bank of Boston is requiring Santander Consumer USA to bolster parent company Santander Holdings USA Inc.’s capital position ― to the tune of $20.9 million ― before paying a $0.15-per-share dividend on May 30. The regulatory move comes on the heels of the Boston Fed’s March 26 objection to SHUSA’s capital plan. SCUSA is restricted from paying out further dividends until SHUSA’s new capital plan ― due Jan. 15, 2015 ― is approved.
On a related note, in late May Santander Consumer USA failed to appear at the American Financial Services Association’s Credit Summit for Fixed Income Investors It was announced to attendees that the team “was stuck in Dallas.” The conference would have been among the first since Santander’s January IPO. In an email the day after the summit to Auto Finance News, a Santander spokeswoman wrote: “Santander Consumer USA Holdings Inc. filed an 8-K this morning, which led to the cancellation of the AFSA appearance.”
