Financial stocks paced declines for the broader U.S. markets today, with the NYSE Financial Sector Index sinking nearly 0.8% while financial companies in the S&P 500 Index dropped almost 1.1%.
In company news, American depository receipts of Banco Santander SA (SAN) fell Monday following reports the Spanish financial services company was dropping a previous plan to separate its U.K. consumer lending business from its corporate and institutional banking operations following the June 23 vote by British citizens to leave the European Union.
Bank officials have been discussing new proposals with the Bank of England that would bring Santander into compliance with so-called ring-fencing rules coming into effect in 2019, according to a Bloomberg report citing an unnamed person with knowledge of the matter. Regulators in the UK and other jurisdictions have developed rules intended to isolate the riskier parts of larger lenders’ business from their retail operations. Santander is now considering even removing a portion of their operations from the UK, if necessary, the source told Bloomberg.
SAN ADRs were down almost 2% at $4.42 each near the end of Monday’s regular session in the United States, staying within 2 cents of their session low.