These are the consequences of Doral’s liquidation unless the Puerto Rico Supreme Court intervenes.
- One thousand direct jobs are lost:
- The jobs of suppliers are lost and to top it all, if Doral does not pay them, they will never collect for the FDIC does not pay them unless it recovers to cover its loss. This has happened to more than one of my clients;
- Investors, those who bought Doral’s stock, most of them Puertorricans that are in their retirement years, will lose their investment;
- It will be more difficult to obtain mortgage loans or loans in general since local banks do not have the liquidity to generate many more loans;
- The PR Government’s credibility will be lost. In the advertisement of a seminar to be held in NY entitled Puerto Rico: Crisis and Opportunity it said “The solvency of a major bank has recently been undermined by the unilateral abrogation of a government tax-related liability, raising questions about the rule of law.” Is that what the People of PR want, because that is what the Government seems to want.
If you want additional information on the Doral case, here are my posts.