Tuesday, March 16, 2010

Report: FDIC Seeking Buyers for Puerto Rican Banks

by Bill McBride on 3/16/2010 11:59:00 AM

From Dow Jones: FDIC Seeks Buyers for Three Puerto Rican Banks

According to two people familiar with the matter, the agency has hired an investment bank to try to find capital or outright purchasers for W Holding Co. Inc., R&G Financial Corp. and Eurobancshares Inc., three banks located in Puerto Rico with almost $21 billion in combined assets.

The three banks hold almost 30% of Puerto Rico's $62 billion of deposits, and their bank subsidiaries are operating under enhanced FDIC scrutiny.
This is a follow up to the report last month from José Carmona and John Marino at caribbeanbusinesspr.com: Feds expected to take action against island banks next month
Federal regulators are likely to begin taking action against troubled island banks sometime [in March], government and industry sources told CARIBBEAN BUSINESS.

Since the beginning of the year, the Federal Deposit Insurance Corp. (FDIC) has been beefing up its local ranks, recruiting accountants and auditors, leading to speculation about imminent action during this year’s first quarter.
...
There are three local banks operating under FDIC cease & desist orders—R-G Premier Bank, Eurobank and Westernbank.
Westernbank is a subsidiary of W Holding Company mentioned in the Dow Jones article.

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