US bank orders Santander subsidiary to fix risk management

The US Federal Reserve ordered the US subsidiary
of Spanish-based Banco Santander to fix 'deficiencies' in the unit's risk management, under an agreement announced Tuesday, according dpa.

The agreement noted problems in Santander Holdings USA Inc's 'governance, risk management, capital planning and liquidity risk management.'

The unit failed a Federal Reserve stress test in March and must now submit a series of reports to inspectors at the Fed.

The agreement noted that Santander Holdings had 'adopted a firm-wide risk management program designed to identify and manage risks across the consolidated organization.'

The Santander Holdings board authorized the then-pending agreement on June 26.

The board is committed under the agreement with the Federal Reserve to 'maintain effective control' and supervision of the company's risk management, capital planning and liquidity risk management.