FDIC closes Puerto Rico's Doral Bank; Banco Popular steps in

[TexasTowelie]

Source: AP

SAN JUAN, Puerto Rico

The Federal Deposit Insurance Corp. shut down Puerto Rico-based Doral Bank on Friday, with Banco Popular taking over most of the operations of what once the U.S. territory's fourth largest bank.

Doral Bank had $5.9 billion in total assets and $4.1 billion in total deposits.

"It is the largest bank failure in five years," FDIC spokesman David Barr said in a phone interview.

The FDIC said Banco Popular will take over eight of Doral's 26 former branches and work with three other banks to operate the other 18 locations on the island. Banco Popular North America will operate Doral's three branches in New York City and Centennial Bank will take over its five branches in Florida.

Read more: http://www.star-telegram.com/news/nation-world/world/article11391731.html

[littlemissmartypants]

1. This is important. nt

[MADem]

3. I agree.

PR has been struggling; one can pretty much take it on faith that they're none too pleased about the possibility of any rapprochement with Cuba. This is not going to help the situation on the island. Hell, it's like the wild west lately....

Another article, same topic: http://www.nytimes.com/2015/02/28/business/dealbook/regulators-shut-down-puerto-rico-bank.html

[forest444]

2. In other news:

Puerto Rico has been attracting Wall Street banksters of late by offering them zero capital gains taxes. Something tells me we'll be hearing about quite a few more of these before all is said and done.

[PoliticAverse]

4. "The failure is estimated to cost the Federal Deposit Insurance Corp. nearly $749 million"

From: http://www.americanbanker.com/news/law-regulation/dorals-failure-appears-imminent-failure-may-cost-fdic-749m-1073011-1.html

[BumRushDaShow]

5. I remember when these closures & takeovers were a weekly LBN posting on DU

In some cases, 5 or 6 happening at a time during the financial crises. Found this link -

https://www.fdic.gov/bank/individual/failed/banklist.html

(full failed bank list since Oct. 2000)