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First Bancorp, OFG Bancorp and Popular Inc. have been trimming exposure to central government loans in recent years to limit their exposure to a financial crisis. Most still bank the island's municipalities, though they have strict underwriting and collateral to protect their interests.
August 4
WASHINGTON Rep. Sean Duffy, R-Wis., is pressing the Federal Deposit Insurance Corp. for information on how it will ensure financial stability in the wake of Puerto Rico's debt crisis.
The U.S. territory defaulted on its debts for the first time earlier this month, when the Government Development Bank paid just over half a million dollars in interest on the $58 million it owes bondholders. Puerto Rico is seeking to restructure $72 billion of debt.
The Financial Services Committee's subcommittee on oversight and investigations is "investigating what measures the FDIC is taking to ensure financial stability and public confidence in the event of a Puerto Rican debt default," Duffy said in an Aug. 4 letter to Martin Gruenberg, chairman of the FDIC.
Duffy, who heads the subcommittee, also requested information by Aug. 18 on how Puerto Rican and U.S. banks are likely to be affected by the crisis and on communication the FDIC has had with banking officials or financial institutions on the island.
A spokesman for the FDIC declined to comment.
