Puerto Rico Department of Justice and Treasury Issue Joint Statement
SAN JUAN, Puerto Rico, Aug. 22, 2014 /PRNewswire-USNewswire/ -- The Puerto Rico Department of Justice and Department of the Treasury issued the following statement today reiterating their efforts to reach a settlement with Doral Financial Corporation and clarifying Doral's latest statements:
"The Puerto Rico Department of Treasury and the Department of Justice continue to work in good faith to reach a settlement with Doral that is in the best interests of the Commonwealth, while adhering to all applicable laws and regulations in agreement with the Court's instructions.
"All of the Treasury's advisors, including Foley & Lardner LLP ("Foley"), were vetted through a robust conflict check procedure. As confirmed by Foley, according to Florida's Rules of Professional Conduct, there is no conflict of interest in Foley continuing to advise Treasury and the Government Development Bank for Puerto Rico ("GDB") on matters related to federal taxation and securities laws, including those relevant to the negotiation and a potential settlement with Doral Financial Corporation. When Doral first hired Foley, Doral affirmatively waived in writing potential conflicts of interest. The facts do not support Doral's allegations that there is a conflict of interest in this instance."
"The Judge of First Instance ruled that negotiations will continue today, and that only litigation attorneys for Treasury and Doral will be present. No legal advisors to Treasury or Doral, other than litigation attorneys, will be present in the meeting, but will be in nearby rooms advising their clients. Foley will continue to provide Treasury and GDB with advice on matters related to federal taxation and securities laws."
SOURCE Puerto Rico Department of Justice; Puerto Rico Department of the Treasury
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