WASHINGTON, Aug. 25, 2014 /PRNewswire/ -- In response to recent developments in negotiations between Doral Financial Corporation and the Treasury Department of Puerto Rico, the noted economist Dr. Robert Shapiro, an advisor to Doral, had this to say:
"It's an expensive proposition for Puerto Rico to renege on its agreements, and the government should honor its agreement with Doral so that it can resolve this matter and restore some credibility with financial markets."
In a forthcoming analysis, Dr. Shapiro concludes that the Treasury Department's moves to abandon a tax agreement with Doral have already imposed new costs on Puerto Rico through its lower bond ratings; and if the dispute contributes to a debt default by the Commonwealth, that will cost the Island and its citizens much more in lost investment, slower economic growth, and reduced revenues than simply paying Doral what the company is owed. Dr. Shapiro will outline this analysis on a call tomorrow.
DATE: Tuesday, August 26, 2014
TIME: 11:00 a.m. EDT
SPEAKER: Dr. Robert Shapiro, Co-founder of Sonecon; former U.S. Undersecretary of Commerce for Economic Affairs
DIAL-IN: 866-952-1908; Conference ID: DORAL
RSVP: Ted Greener ([email protected]; 202-572-6209)
Doral Financial Corporation is a bank holding company engaged in banking, mortgage banking and insurance agency activities through its wholly-owned subsidiaries 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. This briefing is supported by Doral Financial Corporation Additional information about the case of Doral Financial Corporation against the Government of Puerto Rico can be found at www.DoralPuertoRicoFacts.com.
SOURCE Doral Financial Corporation