This page has been archived and commenting is disabled.
Former FDIC Head Sheila Bair Resigns From Parent Of World's Largest Subprime Auto Lender
Just days after Blythe Masters took up her role as Chairman of Santander Consumer - the world's largest subprime auto lenders; former FDIC head Sheila Bair has resigned her position on the board of Banco Santander citing excess "travel" as a reason. One cannot help but wonder if the clash of the titans was too much, if the embrassment of a failed stress test was unbearable, or if Ms. Bair sees the rapidly approach light at the end of the tunnel of subprime lending for what it is... a bigger train that 2008's.
Ms Bair wrote in a letter to the Systemic Risk Council, a regulatory advocacy group, whose chairmanship she is also giving up:
Though I have very much enjoyed my service on the board of this historic banking institution, the frequent trips to Spain are time-consuming and, I fear, would interfere with my responsibilities to the college.
The departure is expected to be announced by Santander as soon as Friday and becomes effective at the end of the third quarter, according to people familiar with the matter. Santander declined to comment.
* * *
One wonders why - apart from her travel excuse...
Blythe Masters taking over a sub...?
- BLYTHE MASTERS NAMED CHAIRMAN OF SANTANDER CONSUMER USA HOLDING
For those unfamiliar with Santander Consumer, they are the lender who, as of Q4 2014, had $15 billion in oustanding subprime auto loans on the books. Here’s a peek into the company's recent trials and travails:
Santander Consumer — a unit of one of only two banks to receive the dubious honor of failing the Fed’s stress tests yesterday and the market leader in subprime auto lending — allegedly ignored a law that requires lenders to obtain a court order before repossessing cars from members of the military and will now pay $9.35 million to settle the issue with the government. Apparently, Santander illegally repoed nearly 800 vehicles from active service members over the course of 5 years and then attempted to extract fees from some 350 additional soldiers in connection with repossessions the bank didn’t even execute.
This is the same Santander Consumer that was subpoenaed last year by the Justice Department in connection with its packaging of subprime auto loans into ABS and whose lending practices also got the attention of the New York Dept. of Consumer Affairs.
Don’t think for a second that any of this is slowing down the Santander Consumer subprime auto securitization machine though. The company, which leads all other lenders when it comes to the total amount of subprime auto loan debt outstanding, has already done a deal this year worth $1.2 billion which accounts for nearly 25% of all subprime auto ABS issuance YTD.
Failed Stress Test?
The CCAR results are now out and 28 of 31 passed. Deutsche Bank, Santander failed for "qualitative" reasons (with significant and widespreasd deficiencies in risk management) and Bank of America will need to resubmit their proposal.
...
It's the second year in a row that Santander Holdings, a unit Santander Group of Spain, has flunked the second phase of the Fed's stress test
Or fears of an oncoming collapse in subprime auto lending...
Here are 60-day delinquency rates by vintage, which pretty clearly show that most of these issues have a date with double-digits sooner or later…
* * *
We are sure we will find out soon when a) Blythe is moved up to Banco's board; and/or b) Subprime lending collapses again.
»
- 12833 reads
- Printer-friendly version
- Send to friend
- advertisements -
Hope she stays away from nail guns.
"I fear, would interfere with my responsibilities to the college."
Wait. What? What college? How did a college enter into this discussion? I assume she's teaching the next generation of young vampires how to drain people of their blood at some institution of higher criminal learning somewhere??
The college debt is sub-prime and there is no collateral, crappy or otherwise.
subprime is the new top tier, there needs to be a sub-subprime
Optimus Prime is still on layaway.
Blythe, ridin' dirty
She got a look at the real numbers and said "fuck this shit" and I can't blame her a bit.....
Bair already said "fuck this shit" at the FDIC, and if you go over to Demonocracy (zh read list) and you can see why.
I'm not sure she traded up on this one. She's jumping from Santander Bank (the parent company in Spain) to Santander Sub-Criminal Financing (the subsidiary company in the USA). BOTH are in deep weeds financially, with the crisis having not yet hit the sub in the US full in the face. They both look like bad choices, but hey, she's The Blythe. She can do anything, including dodge silver bullets, apparently.
Feet tell a better story that words
Classic! I bet not many will get it but that method is accurate as hell.
Auto sales is the saviour of this broken economy?
LOLOLOLOL....................
I'd invest in junk yards.
Yup and SNA
"Travel" to "hell?"
Still guillotine eligible.
Liberty is a demand. Tyranny is submission..
I'm left to wonder if the "excess travel" is referring to her efforts at staying one step ahead of said guillotine in a manner known as "on the run."
Say, I don't see the Helping Hand Acceptance Corporation on that list of subprime lenders.
Maybe this is actually a stimulus ploy, a real job-creator: look at all the repomen we're gonna need!
Santander lends to folks on the reservation. Ha-ha...no street names nor address on the REZ. They've been there for hundreds of years so who needs addresses?
Ok, they have addresses but you can not find them. Addresses are to play white man's game.
Wonder what Santander CLAIMS is their delinquency rate is on the sub-sub-sub prime loans?
You just know that collectively, they're all part of some "A tranche." Somewhere...
Like Masters Bair went on board of a Bitcoin company recently, go figure.
[ Ms. Bair sees the rapidly approach light at the end of the tunnel of subprime lending for what it is... a bigger train that 2008's ]
Due to budgetary pressures, until further notice management has ordered -- that the light at the end of the tunnel be turned off. Thank you; that is all.
Santander is an AWFUL place to have your account and do business. They bought a small bank chain that used to be good, and ruined them.
Santander Bank does a lot of business in Puerto Pobre. There might be a correlation.
Not if you use a burnt phone, collectively. Noobs will be caught . Bring it on Blythe. We have your orange suit sized.
Blythe Masters on the Significance of Blockchains in Finance
Imagine her role in peddling channel stuffing automotive inventory.
Coil - The New Backwards - Careful What You Wish For
Where's '08 and '09 on the delinquency chart? Gaps in data sets always make me curious.
Man, I can't wait to see how much car prices will fall once this bubble bursts. I'll be ready to buy once that happens...
cat fight
Cats spray to control their territory.
Cats aren't bitches
Am I reading this right? How can you be 48months delinquent on a car? Where I come from that's called getting a free car. At least the dealers don't have to pay for extra channel stuffing space, so they goy that going for them.
Every time I turn around here in Houston I see some 28 year old or illegal driving a brand new Benz or BMW. I have never thought a $100 grand a reasonable value for any auto and never considered it, but I constantly tell my wife there is something wrong with that picture. It is no wonder why homes keep going up and auto makers have doubled the cost of a vehicle in the last 10 years.... you allow the dumbest segment to set the market price and give them 8 years to spread payments.
Every time I turn around here in Houston I see some 28 year old or illegal driving a brand new Benz or BMW. I have never thought a $100 grand a reasonable value for any auto and never considered it, but I constantly tell my wife there is something wrong with that picture. It is no wonder why homes keep going up and auto makers have doubled the cost of a vehicle in the last 10 years.... you allow the dumbest segment to set the market price and give them 8 years to spread payments.