.jpg){kind=avatar}
.jpg){kind=avatar}
As reported by Bloomberg few things capture this phenomenon like the partnership between Fiat Chrysler and Banco Santander SA. Whilst the two have built one of the industry’s most powerful subprime machines, according to Moody’s, Santander recently only vetted incomes on fewer than one out of every 10 loans packaged into $1 billion of bonds.
Through it all, Wall Street’s appetite for high-yield investments has kept the loans -- and the bonds -- coming. Santander says it has cut ties with hundreds of dealerships that were pushing unsound loans, some of which defaulted as soon as the first payment. At the same time, Santander plans to increase control over its U.S. subprime auto unit, Santander Consumer USA Holdings Inc., people familiar with the matter said. Lending Practices Santander, subpoenaed or questioned by a group of about 30 states regarding its auto loan underwriting and securitization activities, declined to comment on “active legal matters.” In May, Santander agreed to pay $26 million to settle allegations brought by Delaware and Massachusetts as part of ongoing investigations into the auto industry’s lending practices.
unknownx500
