Santander's latest move in the car loan scandal has sparked a heated debate, with the bank taking a direct shot at the City watchdog, the Financial Conduct Authority (FCA). The scandal, which has now cost the bank over £460 million, has led to a series of actions and a $12 billion takeover of Webster Bank, an American financial institution. The Spanish lender's concerns stem from the FCA's proposed compensation scheme, which they believe goes too far, potentially causing harm to consumers, jobs, and the economy. This is not the first time Santander has voiced its disapproval; their CEO, Mike Regnier, has previously urged the government to intervene, warning of significant negative impacts. The bank's latest provision of £183 million for compensation adds to the growing total of £461 million set aside for the scandal. Despite this, Santander UK reported a 14% annual pre-tax profit rise to £1.5 billion in 2025. The Spanish parent company, Banco Santander, also announced a 12% net profit increase to €14.1 billion. The recent takeover of Webster Bank, a $12.2 billion deal, is expected to boost Santander's US presence and profitability, but investors remain skeptical, causing a 3% drop in Spanish shares. This acquisition follows the July purchase of TSB, a UK high-street lender, for £2.6 billion, further expanding Santander's reach in the Anglo market. The question remains: will Santander's aggressive expansion and compensation efforts be enough to quell the scandal's impact?
