Analysis: Santander Share Buybacks Come Alongside Rising Auto Loan Delinquencies

In the Federal Reserve's second-quarter report on household debt and credit, a rise in auto loan delinquencies was identified, resparking an old conversation regarding subprime auto financing by lenders like Credit Acceptance Corp. (NASDAQ: CACC) and Banco Santander S.A.'s (NYSE: SAN) Consumer Holdings.

Earlier this year, Santander was in the news following the release of a Schedule 13D/A SEC filing. The firm’s shares rose almost 10% after the authorization of a $400-million share buyback.

Is it possible that the buyback helped stabilize earnings per share, smoothing out a rocky past and the risks associated with rising defaults and declining loan performance?

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