WASHINGTON, Aug. 26, 2014 /PRNewswire/ -- Dr. Robert J. Shapiro, chairman of the advisory firm
Sonecon and former U.S. Undersecretary of Commerce for Economic
Affairs, held a media teleconference today with Doral Chief Legal
Counsel and Gibson, Dunn and Crutcher
Partner Matthew D. McGill to discuss the Government of
Puerto Rico's recent abandonment
of negotiations with Doral Financial Corporation.
On the call, Shapiro announced the release of his latest study–
A "Penny-Wise and Pound-Foolish" Policy: The Costs to Puerto
Rico of the Treasurer Nullifying its Agreements with Financial
Institutions, Including the Possibility of a Sovereign Debt
Default – which concludes that the Puerto Rican
government's failure to settle with Doral could lead to losses in
investment, economic growth, and revenues that will far exceed the
cost of simply paying Doral what the company is owed.
"It is an expensive proposition for Puerto Rico to renege on its agreements, and
as a result, the Government is squandering what little credibility
it has left with investors. It is the people of Puerto Rico that will bear the brunt of the
costs. Governor Padilla can be a leader – he can resolve
this, and I sincerely urge him to do so."
Regarding the failed negotiations, McGill described the Doral
legal team's disappointment with Hacienda's abandonment of
negotiations, but noted its confidence in the subsequent trial.
"The government has walked away from an agreement and has
sent us back to the course of litigation and a trial. It is a
disturbing trend and an unfortunate result because there could have
been an amicable resolution to this matter. The government
owes Doral money and the government does not want to pay. We
will go to court to make them pay."
Dr. Shapiro's paper, as well as a recording of the call, is
available on the Doral Puerto Facts Website,
www.doralpuertoricofacts.com, which is a resource for information
regarding the Doral Financial Corporation, LLC legal case against
the Puerto Rican government.
About Doral Financial Corporation: Doral Financial Corporation
is a bank holding company engaged in banking, mortgage banking and
insurance agency activities through its wholly-owned subsbidiaries
Doral Bank, with operations on the
mainland U.S. (New York
metropolitan area and northwest region of Florida) and Puerto Rico. Doral Financial Corporation's
common shares trade on the New York Stock Exchange under the symbol
DRL. Additional information about Doral Financial Corporation can
be found at www.doralpuertoricofacts.com.
SOURCE Doral Financial Corporation