Just in case you thought the financial crisis in the US of A was concentrated on the mainland, here’s some food for thought from Dow Jones (emphasis ours):
The Federal Deposit Insurance Corp. is seeking buyers for three banks in Puerto Rico, a small island with big banking problems.
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., which have 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.
The FDIC’s search for buyers comes after five years of crisis in Puerto Rico’s banking industry, a small and fiercely competitive market for 11 banks.
(H/T Calculated Risk)
The FDIC is not bust, ok? – FT Alphaville
Bair seeks upfront levy on big banks – FT
Alleged Tarp fraud at The Park Avenue Bank [UPDATED] – FT Alphaville