Banco Santander’s $12.3 billion bid for Webster Financial now risks approval delays or outright cancellation after a presidential threat to cut U.S.-Spain trade ties. An analyst downgraded Webster stock to underweight, citing increased deal execution risk, while Executive Chair Ana Botín affirmed confidence in a third-quarter closing based on strong bilateral relations.

Santander holds between £200 million and £300 million ($267 million) exposure to Market Financial Solutions, a UK mortgage lender that recently collapsed. The bank will review credit provisions and assess potential losses as the lender’s failure adds pressure to its corporate lending portfolio.