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Doral Financial Death Watch Done; 3 Banks Ready To Bid?

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Two of three banks rumored to be ready with bids for the leftovers of the failed Doral Financial Corp. (NYSE: DRL) gained Friday.

Doral's death watch ended at the close of business when federal regulators seize the under-capitalized bank.

Popular Inc (NASDAQ: BPOP) closed up 5 percent at $34.51, while First Bancorp (NYSE: FBP) picked up more than 2 percent at $6.59.

A third bank thought to be in the running, OFG Bancorp (NYSE: OFG), was little changed at $17.45.

Each of the three banks have significant Puerto Rican operations and their interest in Doral's performing assets was reported Friday by Caribbean Business.

In shuttering failed banks, the Federal Deposit Insurance Corp. often acts at the close of business on a Friday in order to minimize disruption of services.

The agency, which is owned by the banking industry but administered by the federal government, sells performing assets while absorbing losses.

Doral noted on Tuesday that it continues to be subject to a January 26 regulatory order which set a February 25 deadline to submit a plan to meet minimal capital requirements or accept an offer from another institution.

Shares of the Puerto Rico-based Doral fell more than 46 percent to $0.72 a share before a trading halt.

 

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