Banco Santander is contemplating a significant restructuring of its UK operations, particularly in response to the escalating car finance commission scandal. This scandal could result in substantial compensation costs, possibly reaching £1.9 billion for former borrowers. Analysts believe that isolating the consumer finance division, which includes the contentious car loan sector, could enhance appeal to potential buyers. Despite these plans, any move would require financial regulatory approval, and uncertainties about the final costs related to the scandal remain significant.
The ongoing car finance commission scandal has led Banco Santander to consider reorganizing its UK business to improve its attractiveness to potential buyers.
Hiving off the car finance business could potentially decrease Santander UK's liabilities related to the scandal, especially as costs are still being determined.
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