Road to Depression

Puerto Rico's third largest bank fails!

on . Posted in Road to Depression

SAN JUAN, Puerto Rico (PNN) - February 27, 2015 - 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.

Banco Popular will take the deposits (and 8 of Doral's 26 branches) and the FDIC, aka Amerika's bad bank, eats the bad debt estimated to cost the Deposit Insurance Fund (DIF), as in the taxpayer, some $748.9 million.

What happened is that the FDIC "fat-fingered" the failure release just before the market close, with the stock plunging as a result, 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.

For those trying to back into the level of Non-Performing Loans, here is the rule of thumb: Doral held $5.9 billion in assets at 12/31 over deposits of $4.1 billion implying at least $1.8 billion in asset impairment, and then the FDIC had to eat a $749MM in FDIC losses, so a total of $2.5 billion in non-performing assets which is over 40% of the total.  There are some other banks with NPLs verging on 40%.

Eulogies

Eulogy for an Angel
1992-Dec. 20, 2005

Freedom
2003-2018

Freedom sm

My Father
1918-2010

brents dad

Dr. Stan Dale
1929-2007

stan dale

A. Solzhenitsyn
1918-2008

solzhenitsyn

Patrick McGoohan
1928-2009

mcgoohan

Joseph A. Stack
1956-2010

Bill Walsh
1931-2007

Walter Cronkite
1916-2009

Eustace Mullins
1923-2010

Paul Harvey
1918-2009

Don Harkins
1963-2009

Joan Veon
1949-2010

David Nolan
1943-2010

Derry Brownfield
1932-2011

Leroy Schweitzer
1938-2011

Vaclav Havel
1936-2011

Andrew Breitbart
1969-2012

Dick Clark
1929-2012

Bob Chapman
1935-2012

Ray Bradbury
1920-2012

Tommy Cryer
1949-2012

Andy Griffith
1926-2012

Phyllis Diller
1917-2012

Larry Dever
1926-2012

Brian J. Chapman
1975-2012

Annette Funnicello
1942-2012

Margaret Thatcher
1925-2012

Richie Havens
1941-2013

Jack McLamb
1944-2014

James Traficant
1941-2014

jim traficant

Dr. Stan Monteith
1929-2014

stan montieth

Leonard Nimoy
1931-2015

Leonard Nimoy

Stan Solomon
1944-2015

Stan Solomon

B. B. King
1926-2015

BB King

Irwin Schiff
1928-2015

Irwin Schiff

DAVID BOWIE
1947-2016

David Bowie

Muhammad Ali
1942-2016

Muhammed Ali

GENE WILDER
1933-2016

gene wilder

phyllis schlafly
1924-2016

phylis schafly

John Glenn
1921-2016

John Glenn

Charles Weisman
1954-2016

Charles Weisman

Carrie Fisher
1956-2016

Carrie Fisher

Debbie Reynolds
1932-2016

Debbie Reynolds

Roger Moore
1917-2017

Roger Moore

Adam West
1928-2017

Adam West

JERRY LEWIS
1926-2017

jerry lewis

HUGH HEFNER
1926-2017

Hugh Hefner

PROF. STEPHEN HAWKING
1942-2018

Hugh Hefner 

ART BELL
1945-2018

Art Bell

DWIGHT CLARK
1947-2018

dwight clark

CARL MILLER
1952-2017

Carl Miller

HARLAN ELLISON
1934-2018

Harlan Ellison

STAN LEE
1922-2018

stan lee

CARL REINER
1922-2020

Carl Reiner

SEAN CONNERY
1930-2020

dwight clark

L. NEIL SMITH
1946-2021

L Neil Smith