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Stock Market & Financial Investment News

News Breaks
May 15, 2014
12:15 EDTDRLDoral Financial says Hacienda claims it has no right to refund of overpaid taxes
Earlier today, Doral Financial disclosed the following: Doral Financial Corporation, the holding company of Doral Bank, with operations in Puerto Rico and the U.S., called upon the Government of Puerto Rico, and Puerto Rico Department of Treasury, Hacienda, to honor its obligations, as it repeatedly committed to do in communications with the financial community since January of 2013. Contrary to these commitments, on May 14, Doral received a letter wherein Hacienda unilaterally decided that the 2012 Closing Agreement is null and that Doral has no right to a refund of its overpaid taxes. Doral is evaluating its legal options in connection with this letter and anticipates taking appropriate action to protect its legal rights. Over the last few weeks, Doral has attempted to provide options to the Government to assist in the repayment of its debt to Doral. Instead, Hacienda has sent a letter claiming that its previous agreement with Doral was now null. This unilateral action raises serious questions as to whether the Government will make good on its promises and honor its legal agreements. In midday trading, shares of Doral Financial are down almost 20% to $2.64.
News For DRL From The Last 14 Days
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January 28, 2015
10:21 EDTDRLDoral Financial issued Prompt Corrective Action Directive from FDIC
Doral Financial disclosed in a filing earlier that on January 26, the board of the bank received a letter from the FDIC notifying the board that the FDIC issued against the bank a Prompt Corrective Action Directive, which became effective immediately upon its receipt by the bank. The Directive directs the Bank to promptly increase the amount of its Tier 1 capital to a level sufficient to restore the Bank to the capital category of “adequately capitalized” and/or accept an offer to combine with another insured depositary institution. "The Bank believes the inclusion of the payment obligations from Puerto Rico is appropriate as the Bank has a court order validating the obligation of Puerto Rico under the Closing Agreement. The Bank believes its previously submitted capital restoration plan, while not accepted by the FDIC, presents the best possible outcome for all constituencies," Doral said. Also, on Friday, January 23, the Federal Home Loan Bank of New York notified its wholly-owned subsidiary Doral Bank that the bank’s borrowing terms under its credit facility had been modified from 30 days to overnight and that, barring any significant and material events occurring that impact the financial condition of the bank, the bank is eligible to borrow from its available credit line on an overnight basis in a business as usual environment. The FHLB also notified the bank that as a safe and sound practice and in order to comply with the FHLB’s regulatory guidelines, the FHLB could not extend credit to a capital-deficient member that has positive tangible capital if it receives written notice from the Federal Deposit Insurance Corporation that the member’s use of the FHLB’s advances is prohibited. The bank is currently assessing the materiality and magnitude of the impact of these changes in its liquidity forecasts.
January 16, 2015
16:27 EDTDRLDoral Financial CFO Nancy Reinhard resigns, effective January 19
On January 12, Nancy Reinhard notified Doral Financial that she was considering resigning her position as Acting CFO and Principal Accounting Officer of the company. On January 16, Reinhard did in fact resign from these positions effective January 19. The company is working to fill the positions of CFO and Principal Accounting Officer.

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