{"id":6447,"date":"2018-09-06T19:52:56","date_gmt":"2018-09-06T19:52:56","guid":{"rendered":"http:\/\/www.investorlawyers.com\/?p=6447"},"modified":"2018-09-06T19:52:56","modified_gmt":"2018-09-06T19:52:56","slug":"banco-popular-de-puerto-rico-could-be-held-liable-over-junk-bond-issuance","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/banco-popular-de-puerto-rico-could-be-held-liable-over-junk-bond-issuance\/","title":{"rendered":"New Report Suggests Banco Popular de Puerto Rico Could Be Held Liable Over Island\u2019s Final Junk Bond Issuance"},"content":{"rendered":"<p>\t\t\t\tFour years after Puerto Rico brought to market what became its biggest and final issuance of junk bonds, a 600-page report by disputes and investigative international law firm Kobre &amp; Kim suggests that Banco Popular de Puerto Rico (BPPR) could potentially be held liable for losses related to the issuance. The findings are part of the efforts of the U.S. territory\u2019s Financial Oversight and Management Board to look into what caused the island\u2019s current financial crisis. To date, Puerto Rico remains in over $120 billion in debt as a result of bond issuances and pension liabilities. Thousands of investors continue to file <a href=\"https:\/\/www.investorlawyers.com\/blog\/shepherd-smith-edwards-kantas-llp-investigating-claims-involving-puerto-rico-ubs-bond-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Puerto Rico bond fraud and closed-end bond fund claims<\/a> to recover their losses sustained when the securities plunged in value in 2013.<\/p>\n<p>According to Kobe &amp; Kim\u2019s findings, while initially both <a href=\"https:\/\/www.investorlawyers.com\/investor-claims\/brokerage-firm-misconduct\/citigroup\/\" target=\"_blank\" rel=\"noopener noreferrer\">Citigroup (C)<\/a> and Banco Popular cautioned against yet another junk bond issuance in the wake of the financial challenges Puerto Rico was facing at the time, Banco Popular became part of the syndicate of banks that participated in the $3.5B issuance, profiting in the process. The report indicates, while making clear that the findings are not legal advice, that Banco Popular could potentially be held liable for claim and repayments related to Puerto Rico\u2019s bankruptcy process. Kobe &amp; Kim\u2019s findings are primarily related to a memo that Citigroup and Banco Popular sent to then-Government Development Bank President David Chafey, which included that they did not think the bond issuance was a good idea.<\/p>\n<p>Still, both banks proposed providing instant liquidity backed by taxes in return for the Puerto Rico government approving a balanced budget law, an additional financial control law, and a supervisory group with members appointed by the U.S. Treasury and the Federal Reserve. Citigroup eventually opted not to take part in the bond issuance.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/banco-popular-de-puerto-rico-could-be-held-liable-over-junk-bond-issuance\/\"  title=\"Continue Reading New Report Suggests Banco Popular de Puerto Rico Could Be Held Liable Over Island\u2019s Final Junk Bond Issuance\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Four years after Puerto Rico brought to market what became its biggest and final issuance of junk bonds, a 600-page report by disputes and investigative international law firm Kobre &amp; Kim suggests that Banco Popular de Puerto Rico (BPPR) could potentially be held liable for losses related to the issuance. The findings are part of [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6451,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[4112,3855,4051],"tags":[2624,3083],"class_list":["post-6447","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banco-popular","category-municipal-securities-offerings","category-puerto-rico-debt-crisis","tag-banco-popular","tag-puerto-rico-bond-funds"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Puerto Rican Bank Liable for Junk Bond Inssuance | Investor Lawyers Blog<\/title>\n<meta name=\"description\" content=\"A Puerto Rican Bank could be held liable for junk bond issuance. Banco Popular became part of a syndicate of banks that participated in the $3.5B issuance.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/banco-popular-de-puerto-rico-could-be-held-liable-over-junk-bond-issuance\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Puerto Rican Bank Liable for Junk Bond Inssuance | Investor Lawyers Blog\" \/>\n<meta name=\"twitter:description\" content=\"A Puerto Rican Bank could be held liable for junk bond issuance. Banco Popular became part of a syndicate of banks that participated in the $3.5B issuance.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2018\/09\/9.6.18.jpeg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Puerto Rican Bank Liable for Junk Bond Inssuance | Investor Lawyers Blog","description":"A Puerto Rican Bank could be held liable for junk bond issuance. 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Banco Popular became part of a syndicate of banks that participated in the $3.5B issuance.","twitter_image":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2018\/09\/9.6.18.jpeg","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/banco-popular-de-puerto-rico-could-be-held-liable-over-junk-bond-issuance\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/banco-popular-de-puerto-rico-could-be-held-liable-over-junk-bond-issuance\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"New Report Suggests Banco Popular de Puerto Rico Could Be Held Liable Over Island\u2019s Final Junk Bond Issuance","datePublished":"2018-09-06T19:52:56+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/banco-popular-de-puerto-rico-could-be-held-liable-over-junk-bond-issuance\/"},"wordCount":614,"image":{"@id":"https:\/\/www.investorlawyers.com\/blog\/banco-popular-de-puerto-rico-could-be-held-liable-over-junk-bond-issuance\/#primaryimage"},"thumbnailUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2018\/09\/9.6.18.jpeg","keywords":["Banco Popular","Puerto Rico Bond Funds"],"articleSection":["Banco Popular","Municipal Securities Offerings","Puerto Rico Debt Crisis"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/banco-popular-de-puerto-rico-could-be-held-liable-over-junk-bond-issuance\/","url":"https:\/\/www.investorlawyers.com\/blog\/banco-popular-de-puerto-rico-could-be-held-liable-over-junk-bond-issuance\/","name":"Puerto Rican Bank Liable for Junk Bond Inssuance | Investor Lawyers Blog","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/banco-popular-de-puerto-rico-could-be-held-liable-over-junk-bond-issuance\/#primaryimage"},"image":{"@id":"https:\/\/www.investorlawyers.com\/blog\/banco-popular-de-puerto-rico-could-be-held-liable-over-junk-bond-issuance\/#primaryimage"},"thumbnailUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2018\/09\/9.6.18.jpeg","datePublished":"2018-09-06T19:52:56+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"A Puerto Rican Bank could be held liable for junk bond issuance. 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