Puerto Rico’s 3rd Largest Bank Fails
Based on Bloomberg data, Doral Bank is the 3rd largest (by assets) bank in Puerto Rico…or rather was. After a 58% collapse in the share price today, news broke after the close:
- *PUERTO RICO’S DORAL BANK PLACED UNDER FDIC RECEIVERSHIP
- *PUERTO RICO’S BANCO POPULAR AGREES TO BUY DORAL BANK OPERATIONS
Banco Popular will take the deposits (and 8 of Doral’s 26 branches) and the FDIC, aka America’s bad bank, eats the bad debt estimated to cost the Deposit Insurance Fund (DIF), as in the US taxpayer, some $748.9 million.
3rd largest (by assets) Puerto Rico-domiciled bank based on BBG data….
The writing could perhaps have been on the wall…
And it seems the news of the FDIC Receivership leaked…
What happened is that the FDIC “fatf-fingered” the failure realase just before the market close, with the stock plunging as a reulst, then promptly retracted the release but the damage had already been done. After the close, the FDIC re-informed the public that the bank, which back in 2010 traded at $125, had indeed been liquidated.
…click on the above link to read the rest of the article…
