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Report: Santander US unit expected to again fail Fed's stress test

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Report: Santander US unit expected to again fail Fed's stress test

BancoSantander SA's U.S. unit is expected to the U.S. Federal Reserve's stresstest due to weaknesses in internal risk controls and the lack of integration ofvarious activities in the country under a holding company, Reuters reportedApril 8, citing "banking sources and analysts."

Ifso, this would be the third consecutive year for to fail thetest, according to the news source.

Although Santander Chairwoman Ana Botin would considerselling the business after fixing its problems, any sale will be difficultwithout full compliance with the Fed's standards, the report noted.

The Spanish lender accepts that a lot remains to be done tofix the U.S. business, the newswire added.

On the other hand, Deutsche Bank AG, which also failed the Fed's test in2015, seems better positioned to pass the test this time around, analystsreportedly say.

U.S. lenders submitted their capital and risk managementplans to the country's central bank in the week of April 4. The stress testresults are reportedly expected to be published by June-end.