Santander, Bankia progress in the US

soBy Julia Pastor, in Madrid | ACF analysts reported on Tuesday that Sovereign, a subsidiary of Banco Santander in the US and up until now only a savings bank, has informed the SEC that it has received formal permission from the federal regulators to become a national bank. Also, Santander Holdings, that controls Sovereign, has received the corresponding authorisation to become a bank holding. Both authorisations will take effect during 2012.

According to experts, this change in status will

“allow Sovereign greater flexibility in granting credits and reaching a new and wider client segment that it could not cater to, such as large corporations, due to certain restrictions. This change will strengthen the group’s position in the US.”

Sovereign obtained an attributable profit of $554mn in 9M11: 44.4% more than up to September 2010, with a slight improvement in the income evolution and mainly based on a sharp decrease in allocations.

Moreover, and according to Link reports, another Spanish bank, Bankia, has received the approval of the United States Federal Reserve to offer financial services to clients in the US and it will open a branch in Miami. This new Bankia office will integrate the business and the clients that the group had until now in Miami: one Caja Madrid’s and the other Bancaja’s. This office will focus mainly on business companies.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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