[Federal Register Volume 76, Number 158 (Tuesday, August 16, 2011)]
[Notices]
[Pages 50733-50734]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-20767]


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FEDERAL DEPOSIT INSURANCE CORPORATION


Determination of Insufficient Assets To Satisfy Claims Against 
Financial Institution in Receivership

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Notice.

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SUMMARY: The FDIC has determined that insufficient assets exist in the 
receivership of Westernbank Puerto Rico, Mayaguez, Puerto Rico, to make 
any distribution to general unsecured claims, and therefore such claims 
will recover nothing and have no value.

DATES: The FDIC made its determination on August 2, 2011.

FOR FURTHER INFORMATION CONTACT: If you have questions regarding this 
notice, you may contact an FDIC Claims

[[Page 50734]]

Agent at (904) 256-3925. Written correspondence may also be mailed to 
FDIC as Receiver of Westernbank Puerto Rico, Attention: Claims Agent, 
7777 Baymeadows Way West, Jacksonville, Florida 32256.

SUPPLEMENTARY INFORMATION: On April 30, 2010, Westernbank Puerto Rico, 
Mayaguez, Puerto Rico, (FIN 10231) was closed by the Office of 
the Commissioner of Financial Institutions of the Commonwealth of 
Puerto Rico (``OCFI''), and the Federal Deposit Insurance Corporation 
(``FDIC'') was appointed as its receiver (``Receiver''). In complying 
with its statutory duty to resolve the institution in the method that 
is least costly to the deposit insurance fund, see 12 U.S.C. 
1823(c)(4), the FDIC facilitated a transaction with Banco Popular de 
Puerto Rico, San Juan, Puerto Rico, to acquire the deposits and most of 
the assets of the failed institution.
    Section 11(d)(11)(A) of the FDI Act, 12 U.S.C. 1821(d)(11)(A), sets 
forth the order of priority for distribution of amounts realized from 
the liquidation or other resolution of an insured depository 
institution to pay claims. Under the statutory order of priority, 
administrative expenses and deposit liabilities must be paid in full 
before any distribution may be made to general unsecured creditors or 
any lower priority claims.
    As of May 31, 2011, the value of assets available for distribution 
by the Receiver, together with anticipated recoveries on claims against 
directors, officers, and other professionals, and tax refunds was 
$4,673,843,188. As of the same date, administrative expenses and 
depositor liabilities equaled $8,031,697,095, exceeding available 
assets and potential recoveries by $3,357,853,907. Accordingly, the 
FDIC has determined that insufficient assets exist to make any 
distribution on general unsecured creditor claims (and any lower 
priority claims) and therefore all such claims, asserted or unasserted, 
will recover nothing and have no value.

    Dated: August 11, 2011.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2011-20767 Filed 8-15-11; 8:45 am]
BILLING CODE 6714-01-P