Santander is consolidating several business units in the U.S., while simultaneously hiring 150 bankers to grow its investment banking operation in the country, according to reports by the Boston Business Journal and Reuters.
As part of the reorganization, which involves combining its commercial banking business with its commercial real estate and vehicle-financing businesses, the Spanish bank laid off Joe Abruzzo, its head of commercial banking, a source familiar with the plans, told the Boston Business Journal.
The two units, which had separate structures and reporting lines, will now fall under one commercial banking department, the bank said, according to the publication.
Santander announced the plans internally at a town hall last week and the consolidation went into effect on Monday.
The new commercial bank will be headed by Michael Lee, Santander’s managing director of commercial real estate banking, the Boston Business Journal reported.
Meanwhile, the Spanish bank’s U.S. arm is leaning into its investment banking operation, with plans to hire around 150 bankers for the U.S. unit, Reuters reported Thursday, citing sources familiar with the matter.
The hires are expected to be completed over the next year or so, Santander's global corporate and investment banking chief, Jose M. Linares, said during a town hall last week, the sources told Reuters.
Around 60 of the bankers hired for the investment banking unit would be managing directors, Linares said.
During the town hall, Linares detailed additional leadership changes as part of the reorganization.
David Hermer, a former Credit Suisse banker, was named head of the firm’s U.S. corporate and investment banking business, sources told Reuters.
Steven Geller, the former head of global M&A at Credit Suisse, was named head of the firm’s M&A business, sources told the wire service.
The bank did not respond to Banking Dive’s request for comment.
During a press briefing on Wednesday, Santander CEO Hector Grisi said the bank aims to bolster its investment banking operations in the U.S., but is not aiming to compete against the nation’s largest banks.
"In no way are we thinking about being a major player (...) nor do we plan to compete with the big players," Grisi said, according to Reuters.
The Spanish bank’s U.S. consolidation follows the wind down of its U.S. mortgage operations, which it initiated in February last year.
Tim Wennes, CEO of the Spanish bank’s U.S. arm, said last year that the firm would stop originating mortgages and home equity loans because these portfolios lack scale.
