House of Representatives Financial Services Oversight and Investigations Subcommittee Chairman Sean Duffy (R-WI) has written to Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg to ask for assurances that his agency can ensure financial stability and public confidence should Puerto Rico further default on its financial obligations.
Chairman Duffy requested information in six key areas including:
· The FDIC preparedness plan in the event of financial insolvency,
· A detailed overview of debts in danger of default,
· A list of U.S. banking institutions that hold significant Puerto Rican debt portfolios,
· Details regarding FDIC contact with Puerto Rico’s Office of the Commissioner of Financial Institutions (OCFI),
· Advice the FDIC has given to Puerto Rican banking institutions,
· All correspondence between the FDIC and OCFI relevant to the solvency of the Puerto Rican banks.
In his press release, Rep. Duffy noted both Governor Garcia Padilla’s announcement that roughly $72 billion of Puerto Rico’s debt could not be paid and the Puerto Rico’s Government Development Bank’s failure to pay certain bonds due August 1.
Read full text of the letter here.