Doral Financial, the troubled Puerto Rico bank with offices that were raided by the FBI last month, has run afoul with banking regulators over its plans to restore its depleted capital levels, the New York Times DealBook blog reported yesterday. For the second time in a little more than a month, the Federal Deposit Insurance Corp. has rejected the bank’s capital restoration plan, Doral said in a securities filing yesterday. The FDIC took issue with the fact that Doral’s capital plan includes a $230 million tax refund, which the Commonwealth of Puerto Rico is refusing to pay, according to the securities filing. Doral has told regulators that including the refund as part of its capital plan is appropriate because a Puerto Rico court has ruled that the refund is legitimate. The government is appealing the ruling.
